InvestmentPitch Media Video Discusses FSD Pharma, a Life Sciences Holding Company, and the Closing of its Sale of Non-Core Assets for $16.4 million
May 11 2022 - 5:00AM
FSD Pharma Inc. (NASDAQ:HUGE) (CSE:HUGE) (FSE:0K9A), a life
sciences holding company dedicated to building a portfolio of
assets and biotech solutions, has closed the sale of non-core
assets for $16.4 million.
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available by clicking on the image or link below:
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The company has sold its former cannabis
processing facility, located in Coburg, Ontario, which it acquired
for $5.5 million in November 2017. The property includes a
26.1-hectare parcel of land and a 50,800 square meter building.
After commissions and fees, the sale netted
approximately $15,481,000 in non-dilutive cash, increasing the
company’s cash position to approximately $50 million, or
approximately $1.30 per share with only 38.4 million shares issued.
The shares are currently trading at $1.15 on the Canadian
Securities Exchange.
The facility was non-essential to the company’s
business model upon its decision in early 2020 to exit the crowded
cannabis production market to focus as a biotech company. In
addition to the sale of this non-core asset, the company continues
to enhance shareholder value via a share repurchase plan, which to
date in 2022 has reduced the outstanding share position by 1.52
million shares.
Anthony Durkacz, Interim CEO and Co-Executive
Chairman, stated: “This is a major accomplishment and puts us in a
good position going forward especially considering the current
state of the capital markets. While most companies have taken huge
write-downs on dispositions of cannabis-related assets, we were
able to net significant profit from selling the facility. Combined
with our existing cash on hand, we are sufficiently capitalized for
operations through 2025, inclusive of budget allocations for
planned clinical trials and without having to look to the capital
markets for any additional funds. Our cash position now exceeds our
market capitalization, as we continue to work toward building value
for our shareholders.”
FSD Pharma Inc., as a biotechnology company, is
focussed on advancing novel drug candidates targeting lucrative
areas of unmet medical needs like Muscular Sclerosis, Depression
Disorders, and Inflammatory Disorders. Its Lucid-MS Neuroprotective
compound has shown, in pre-clinical models, to prevent and reverse
Myelin degradation, which is a cause for Multiple Sclerosis as well
as other Neuro-degenerative disorders. It has shown excellent
results in several animal models. The current treatment market is
valued at US$23 billion globally.
For more information on the company’s drug
candidates, please visit the company’s website, www.FSDpharma.com,
or contact Zeeshan Saeed, President and Executive Co-Chairman, at
416-854-8884 or by email at zsaeed@FSDpharma.com.
For investor relations email IR@FSDPharma.com.
Disclaimer
The information in this Investmentpitch Media Ltd
video is for the viewers information only. FSD Pharma has paid a
fee not exceeding $2,000 in cash to have its current news release
produced in video format. The corporate information is based on
information that is publicly available. Any information provided by
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