The agreement has been finalised with the Oklahoma Medical Research Foundation (OMRF) and the Rajiv Gandhi Centre for Biotechnology (RGCB) for novel liver cancer treatment.
Liver cancer is the second most common cause of cancer deaths worldwide and claims around 750,000 lives a year.
The American Cancer Society reckons 39,000 people in the US will be diagnosed with primary liver cancer in 2017 and that 27,000 will die this year.
RGCB researchers identified the therapeutic effect of the compound, which comes from the black nightshade plant, and entered a collaboration with OMRF to further develop it.
In animal models, uttrocide B has been shown to be more potent than the currently available drug for the disease and caused no noticeable side effects.
It was shown to be 10 times more cytotoxic to HepG2 liver cancer cells than the only drug currently on the market for the condition, said Q BioMed's chief executive Denis Corin.
"Our ultimate goal is to use uttrocide B as a chemotherapeutic against liver cancer, which has very few therapeutic options," he added.
"This is truly an unmet need in liver cancer," said OMRF vice president of technology ventures, Manu Nair.
"To find a plant-based treatment for a condition like liver cancer can open the door to a wide variety of other natural products for treating human disease."
Yesterday, the firm said it would be presenting today at the 6th Annual Marcum MicroCap Conference in New York.
Chief executive Corin will cover the company's business strategy, pipeline, recent developments and look forward at milestones for the balance of 2017 and beyond.
Since its launch in 2012, this event has become a nationally recognized forum for publicly traded companies with a market cap of less than $500mln to network with fund managers and high net worth investors who focus on small cap equities.
Shares eased around 6% to $4.06.