On Tuesday, Mydecine’s CEO, David Joshua Bartch (who generally goes by ‘Josh Bartch’), filed more than 10 insider transaction notices, the earliest of which refers to a transaction that occurred in February 2020: over two years ago.
Note: According to the BC Securities Commission, insiders must file insider reports “within five days after trading the company’s securities.” A control person must file within three calendar days, meanwhile. “According to the System for Electronic Disclosure by Insiders’ (SEDI) documentation, “late filing or non-filing of insider reports is an offence under securities laws and may be subject to legal action.” But, according to the same document, the consequence for late filing of an insider report in British Columbia is just $50 per transaction, per insider, per issuer.
The number of shares involved in these transactions is by no means insignificant, with one filing showing a May 2021 private transfer of 10,000,000 shares from Bartch to an unknown counterparty. In November 2021, Bartch received over 5 million shares as compensation.
We asked Bartch about these transactions, which were reported incredibly late. Bartch confirmed that “these are NOT sales of stock but private transfers,” to which he “did not receive proceeds” (emphasis his own).
Bartch went on to explain that he has “made zero public market stock sales,” and that he has “no intention of doing so in the near term.”
Still, the unexplained and large transfer of shares is odd, and warrants scrutiny; especially given that incredibly late insider filings. We asked Bartch to provide more information, such as disclosing the counterparty or the purpose of the transfer, but the CEO refused to provide further comment.
“I will be doing a few interviews in the near future addressing this, Bartch told us. He said that he also intends to clarify “the reasoning for the reverse split, several very positive company updates and the numerous false statements circulated in chat rooms.”
Today, the company announced the closing of a $2.8m public offering, paying a 7% commission to agents. The company is running on fumes, with a monthly burn of $1.6m according to accounts for the quarter ended March 31. During that quarter, the company spent $2m on salaries and consulting fees.