FSD Pharma Monetizes Non-Core Asset With Sale of Partial Equity Stake in Pharmadrug Inc.
May 21 2020 - 7:30AM
Business Wire
- Buyer Holds Option to Purchase Additional
Shares -
FSD Pharma Inc. (NASDAQ:HUGE) (CSE:HUGE.CN) (FRA:0K9A)
(“FSD Pharma” or the "Company") today announced the sale of 5.0
million common shares of Pharmadrug Inc. (CSE:BUZZ) (formerly Aura
Health) in a privately negotiated transaction at C$0.08 per share
for cash proceeds of C$400,000. Under the terms of the sale, the
buyer has the option through June 26, 2020 to purchase an
additional 5.0 million shares of Pharmadrug at C$0.10 per share
from FSD Pharma for cash proceeds of C$500,000. Additional
transaction details can be found on the SEDI website at
www.sedi.ca/sedi/.
FSD Pharma’s equity position of 13.5 million Pharmadrug shares
was established in April 2019 as part of a share exchange
transaction. The Company may consider the divestiture of the
balance of its equity stake in Pharmadrug through open market
transactions.
"We are pleased to finalize this transaction as part of our
continuing efforts to strengthen disposable cash on our balance
sheet primarily to support our pharmaceutical R&D program. We
plan to continue to shore up our cash position by strategically
divesting non-cash assets, and raising new capital, either through
private placement, debt financing or registered offering of our
Class B subordinate voting stock,” stated Raza Bokhari, MD,
Executive Co-Chairman & CEO.
About FSD Pharma
FSD Pharma Inc. (NASDAQ:HUGE; CSE:HUGE.CN; FRA:0K9A) is a
publicly traded holding company, since May 2018.
FSD BioSciences Inc., a wholly-owned subsidiary, is a specialty
biotech pharmaceutical R&D company focused on developing over
time a robust pipeline of FDA-approved synthetic compounds
targeting the endocannabinoid system of the human body to treat
certain diseases of the central nervous system and autoimmune
disorders of the skin, GI tract, and the musculoskeletal
system.
Through its acquisition of Prismic Pharmaceuticals in 2Q19, FSD
BioSciences Inc. is also making an effort to help address the
opioid crisis by developing opioid-sparing prescription drugs
utilizing the ultra micronized formulations of PEA.
The Company has Phase 1 first-in-human safety and tolerability
trials for its lead candidate, FSD 201 micro-PEA, currently
underway in Australia by principal researcher Jason Lickliter, MD,
Chief Medical Officer of Nucleus Network.
FSD's wholly-owned subsidiary, FV Pharma, is a licensed producer
under Canada's Cannabis Act and Regulations, having received its
cultivation license on October 13, 2017, and its full Sale for
Medical Purposes license on June 21, 2019. The Company is licensed
to cultivate cannabis in approximately 25,000 square feet of its
facility in Cobourg, Ontario.
Cautionary Note Regarding Forward-Looking Statements
Neither the Canadian Securities Exchange nor its regulation
services provider accept responsibility for the adequacy or
accuracy of this release.
Certain statements contained in this press release constitute
"forward-looking information" and "forward-looking statements"
within the meaning of applicable Canadian and U.S. securities laws
(collectively, "Forward-Looking Information"). Forward-Looking
Information includes, but is not limited to, information with
respect to FSD Pharma's strategy, plans or future financial or
operating performance, receipt of any U.S. Food and Drug
Administration ("FDA") approvals, development of any FDA approved
synthetic compounds, the successful treatment of diseases by such
compounds, the ability to address the opioid crisis, the
development of opioid sparing prescription drugs utilizing the
ultra micronized formulations of PEA, the intention and timing of
the initiation of Phase 1 first-in-human safety and tolerability
trials for PP 101 micro-PEA, maintenance of FSD Pharma's Cannabis
Act License, the ability to cultivate and sell cannabis produced in
FSD Pharma's facility, the progress and funding of the CBD Research
Project, the ability and technical feasibility of algae being
utilized to produce pharmaceutical-grade cannabinoids and the
ultimate success of the CBD Research Project, the production of
prescription drugs that can treat diseases affecting the central
nervous system, and related royalty fees. The use of words such as
"budget", "intend", "anticipate", "believe", "expect", "plan",
"forecast", "future", "target", "project", "capacity", "could",
"should", "focus", "proposed", "scheduled", "outlook", "potential",
"estimate" and other similar words, and similar expressions and
statements relating to matters that are not historical facts, or
statements that certain events or conditions "may" or "will" occur,
are intended to identify Forward-Looking Information and are based
on FSD Pharma's current beliefs or assumptions as to the outcome
and timing of such future events. Such beliefs or assumptions
necessarily involve known and unknown risks and uncertainties that
could cause actual results to differ materially from those
expressed or implied in such Forward-Looking Information.
Forward-Looking Information is not a guarantee of performance. The
Forward-Looking Information contained in this press release is made
as of the date hereof, and FSD Pharma is not obligated to update or
revise any Forward-Looking Information, whether as a result of new
information, future events or otherwise, except as required by law.
Because of the risks, uncertainties and assumptions contained
herein, investors should not place undue reliance on Forward
Looking-Information. The foregoing statements expressly qualify any
Forward-Looking Information contained herein.
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version on businesswire.com: https://www.businesswire.com/news/home/20200521005388/en/
FSD Pharma Inc. Sandy Huard, Head of Communications, FSD
Pharma, Inc. sandy@fsdpharma.com (647) 864-7969
Or
LHA Investor Relations Sanjay M. Hurry shurry@lhai.com
(212) 838-3777
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