Banned C3 team has new IPO for Canadian markets

The team that was banned by the SEC  for the troubled C3 International deal, is already back with a new variation called C3 Pharmaceuticals. It’s the same executives and the same drug, but with a slightly different name planning to list on the Canadian Securities Exchange.

The new iteration of C3 Pharmaceuticals, Inc. announced that it executed a tailored Share Subscription Agreement (SSA) with GEM Global Yield LLC SCS and was planning on listing on the Canadian Securities Exchange. Once again, the primary drug is Idrasil.

The company said that the capital raised from the IPO, along with a commitment of C$135 million (approximately $100 million) from GGY, would be used to expand manufacturing operations and introduce Idrasil to the U.S. and then international markets.

C3 International’s SEC troubles

Green Market Report wrote that C3 International Inc. and its co-founders, Steele Smith III and Theresa Smith are fighting back against a federal court decision that banned them from the securities industry and ordered them to pay about $6 million in an alleged medical marijuana investment fraud case. They filed an appeal Monday with the 9th U.S. Circuit Court of Appeals, according to Law360. They’re seeking to overturn a July ruling that prohibited them from violating securities laws and held them liable for nearly $2 million in disgorgement plus over $4 million in civil penalties.

The SEC’s original complaint, filed in September 2021, accused the Smiths of raising about $2 million from over 40 investors between 2014 and 2019. The agency alleged they sold C3 stock using false statements about Idrasil’s patent status and insurance coverage. In a previous 2022 case, C3 was ordered to pay $5.1 million in disgorgement, interest, and penalties after failing to participate in SEC litigation.

C3 Pharmaceuticals

One day after filing their appeal, the executives announced their new venture. There is no available offering prospectus on the planned IPO at this time.

Steel said in the press release, “Idrasil is expected to be a highly disruptive medical advancement in recent pharmaceutical history.” The statement also said, “This is why there have been legal and bureaucratic obstacles to bringing it to market and securing insurance approvals.”

Green Market Report has reached out to GEM for a comment regarding the new IPO and will update the story if a response is received.