Is Q BioMed Inc (OTCMKTS:QBIO) About To Turnaround?

Subsequent to our coverage of Q BioMed Inc (OTCMKTS:QBIO) back on March 23, the company ran up from $4.9 a share to $6.9. It's since corrected a bit, and currently goes for around $5.3. We outlined our thesis on the stock in March, but there have been a couple of developments since, and it's well worth taking a look at these and reiterating our stance, in anticipation of the current correction reversing and starting Q BioMed back up on its bullish run.The company is s biotechnology company that follows a strategy that's a little different from your standard early stage drug developer. Instead of bringing its assets through discovery, it buys them from other developers, and then seeks to carry them through to commercialization (or if they've already picked up approval, seeks to get them on the shelves for a successful sales execution).So, as we noted last time, the next major catalyst is coming from an asset called SR-89. It's an IV reformulation of Strontium Chloride, which is currently used widely as a toothpaste administration drug for bone cancer sufferers (it's a pain management type asset). The idea is to get this one on the shelves (it's already been approved) and get revenues flowing into the company, which can then be used to advance the lower pipeline towards commercialization.The thing with a strategy like this is that it dramatically reduces the standard dilution risk associated with an exposure to a company at this end of (in particular) this space.There's some dilution on the cards – don't misunderstand our point. The company has raised a total of $4 million by way of a three tranche convertible debenture agreement with an entity called Yorkville Advisors Global. The last time we covered this one, the second tranche had just closed, and brought the total raised to $2.5 million. The latest announcement detailed the closing of the third and final tranche, which brings the total to the $4 million noted above. The terms are available on this 8-K, and while dilutive, they're not too bad (there are a couple of provisions in there that limit impact on shareholders).The situation can be summarized as follows: development stage biotechs raise (and by proxy, dilute) to fund drug development, whereas Q BioMed has raised to fund the purchase and commercialization of an asset (SR-89) that's going to generate revenues, which will foot the bill for the bringing of other assets to market.Even if these other assets don't succeed, there's still an asset bringing in revenues at the end of the line. That's a nice card to have in your back pocket as a shareholder.The deeper pipeline includes a drug called MAN-01, which is targeting glaucoma and a host of related diseases, and a drug called UTTROCIDE-B, which is reportedly a chemotherapy drug (although the exact indication is as yet unknown, we can assume it's relatively wide in scope as most chemo agents are).So the major development we were looking for last time was the closing of this final round. That's now happened, and so our major catalyst (group) becomes the commercialization of the SR-89 asset. There are a few things involved with this, ranging from the signing of a contract to get the drug manufactured to the starting of the actual sales cycle, and now the $4 million is in the bank, there's nothing to stop these catalysts starting to flow.Of course, there's no guarantee that we won't see any degree of raise and dilution between now and the above two early stage assets hitting shelves. Chances are we will. The point is that this is reduced impact dilution, however, and that makes Q BioMed an interesting allocation, and very much one to watch, as 2017 matures.We will be updating our subscribers as soon as we know more. For the latest updates on QBIO, sign up below!Disclosure: We have no position in QBIO and have not been compensated for this article.