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FSD Pharma Sells Partial Equity Stake in Pharmadrug
Friday 22 May 2020

Canada-based FSD Pharma Inc. (NASDAQ: HUGE) (CSE: HUGE.CN) (FRA: 0K9A) has sold 5m common shares of Pharmadrug Inc. (CSE: BUZZ) (formerly Aura Health) in a privately negotiated transaction at CDNUSD0.08 per share for cash proceeds of CDN 400,000, the company said.

Under the terms of the sale, the buyer has the option through June 26, 2020 to purchase an additional 5.0 m shares of Pharmadrug at CDN 0.10 per share from FSD Pharma for cash proceeds of CDN 500,000.

FSD Pharma's equity position of 13.5 m 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.

FSD BioSciences is a specialty biotech pharmaceutical R and 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.
Date Published: 22/05/2020