InvestmentPitch Media Video Discusses Life Sciences Holding Company FSD Pharma and the Closing of its $16.4M Non-Core Asset Sale
VANCOUVER, British Columbia, May 11, 2022 (GLOBE NEWSWIRE) — FSD Pharma Inc. (NASDAQ: HUGE) (CSE: HUGE) (FSE: 0K9A), a life sciences holding company dedicated to building a portfolio of biotechnology assets and solutions, completed the sale of non-core assets for $16.4 million.
For more information, please watch the InvestmentPitch Media video which provides additional information on this news and the company. The video can be viewed at “InvestmentPitch” and on “Youtube”. If these links are not enabled, please visit www.InvestmentPitch.com and enter “FSD Pharma” in the search field.
The company sold its former cannabis processing plant, 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 building of 50,800 square meters.
After commissions and fees, the sale raised 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 not essential to the company’s business model when it decided in early 2020 to exit the crowded cannabis production market to focus as a biotechnology company. In addition to the sale of this non-core asset, the company continues to increase shareholder value through a share buyback 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, said:This is a major achievement that positions us well for the future, especially given the current state of financial markets. While most businesses suffered huge write-downs on cannabis asset disposals, we were able to realize a significant net profit from the sale of the facility. Combined with our existing cash, we are sufficiently capitalized for our operations through 2025, including budget allocations for planned clinical trials and without having to turn to the capital markets for additional funds. Our cash position now exceeds our market capitalization as we continue to work to create value for our shareholders.”
FSD Pharma Inc., as a biotechnology company, is focused on advancing novel drug candidates targeting lucrative areas of unmet medical need such as muscular sclerosis, depressive disorders and inflammatory disorders. Its neuroprotective compound Lucid-MS has been shown, in preclinical models, to prevent and reverse the breakdown of myelin, which is a cause of multiple sclerosis as well as other neurodegenerative disorders. It has shown excellent results in several animal models. The current treatment market is valued at US$23 billion worldwide.
For more information about the Company’s drug candidates, please visit the Company’s website, www.FSDpharma.comor contact Zeeshan Saeed, President and Executive Co-President, at 416-854-8884 or by email at [email protected].
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The information in this video by Investmentpitch Media Ltd is intended for viewers only. FSD Pharma paid a fee not exceeding $2,000 in cash to have its current press release produced in video format. Company information is based on publicly available information. Any information provided by Investmentpitch Media Ltd., through its media services should not be construed as a recommendation, suggestion or offer to buy or sell any securities, but is provided solely as an informational media service. Investmentpitch Media Ltd makes no warranties or representations as to the accuracy or completeness of this information. All due diligence should be performed by the viewer or their financial advisor. Investing in securities is speculative and involves risk.
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