CNBX Pharmaceuticals Trims Losses

Despite steep operating cuts and no revenue, the company plans to advance its novel therapy into human trials in 2025.

July 15, 2025

CNBX Pharmaceuticals is cutting its burn rate and narrowing losses while preparing to enter a pivotal phase for its oncology pipeline. The company ended its third fiscal quarter with a net loss of $59,727—down from $130,632 a year ago. For the nine months ending May 31, 2025, total losses came in at $163,867, a sharp drop from $634,614 over the same period in 2024. That decline is tied directly to reduced activity across the business.

This quarter, CNBX focused on preserving capital while laying the groundwork for what comes next: a first-in-human clinical trial. The company’s lead candidate, RCC-33, is under development for colorectal cancer. The therapy is being designed for two settings—either administered shortly after diagnosis and before cancer staging (a neoadjuvant approach), or in patients with advanced disease as a follow-on to surgery. CNBX expects to begin Phase I/II trials in 2025.

RCC-33 Moves Toward Clinical Milestone

RCC-33 is the core of CNBX’s current development focus. Positioned as a first-in-class therapy for colorectal cancer, the drug targets tumor cells early in the treatment cycle. The company is planning to study RCC-33 both as a standalone option during the post-diagnosis, pre-surgical window and as a supportive therapy following surgery for cases resistant to existing treatments.

This dual strategy is designed to expand potential patient reach and align with evolving clinical pathways in oncology. CNBX is targeting a first-in-human trial launch within the next year and is actively working to set the stage—either independently or in partnership.

Convertible Loans Drive Balance Sheet Activity

To support operations, CNBX raised $129,992 in new convertible loans during the nine months ended May 31. That’s nearly five times the $26,252 raised through similar instruments in the same period last year. At the same time, the company issued 61.4 million shares in exchange for debt conversion valued at $106,442. These conversions directly impacted the share count, which rose from 31.1 million in August 2024 to 92.5 million as of May 2025.

Additional post-quarter activity included the issuance of 9 million more shares in early June 2025 from a separate loan conversion valued at $7,017.

The convertible structure is central to how CNBX has financed its operations over the past several years. Several notes issued in 2023 and 2024 carry interest rates between 5% and 10%, with staggered maturities extending into 2025. Most are due within the next 12 months.

In parallel, the company continues to carry older institutional notes and a demand promissory note with conversion rights, repayment provisions tied to future financing events, and rights for investors to apply accrued amounts toward future securities purchases. These legacy notes come with various default provisions and interest escalations in the event of nonpayment.

Cash Position and Capital Outlook

At quarter-end, CNBX held just $13,648 in cash, down from $26,416 at the end of August 2024. The company expects to need at least $1 million over the next 12 months to support core operations, clinical development, and administrative expenses.

No new revenue streams are currently forecasted, and CNBX is clear about its funding position. Without additional capital, the company’s ability to maintain operations will be limited. Management is evaluating multiple paths—new equity, debt, or partnerships—but has no firm commitments in place. There are no bank lines or credit facilities available, and the company acknowledges that its future depends on its ability to raise capital quickly.

Going Concern and Financial Controls

The company’s auditors flagged concerns over its ability to continue as a going concern in the last annual filing, and the most recent financials reinforce that position. Accumulated losses since inception now total over $25 million. Negative working capital and shareholder equity remain a key challenge, with total liabilities exceeding assets by $2.5 million.

Despite these headwinds, CNBX is actively maintaining oversight of its internal reporting and compliance. The Audit Committee reviewed and affirmed the effectiveness of the company’s disclosure controls and procedures as of the end of the quarter. No material changes were made to internal controls during the reporting period, although management continues to emphasize the limitations of any control environment.

Related Party Balances and Operational Dependencies

The company also maintains significant related party balances. As of May 31, $932,771 was owed to two directors, with an additional $223,645 payable to Cannabics Inc., a related party. All of these obligations are non-interest bearing and due on demand. These figures underscore CNBX’s reliance on stakeholders for financial flexibility, particularly in the absence of external funding.

What Comes Next

With clinical aspirations on the horizon, CNBX is focused on getting RCC-33 into human trials. The path forward includes building out its trial infrastructure, engaging partners, and securing the capital needed to sustain operations during the regulatory process. While the company has narrowed its losses and controlled costs, its cash position remains limited, and the pressure to raise funds is intensifying.

Whether through strategic alliances, licensing deals, or another round of convertible financing, CNBX’s next steps will depend on its ability to execute under constrained conditions. For now, the company is staying lean, advancing development, and watching the calendar as it moves toward a potentially defining trial in 2025.