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 assets and biotech solutions, has closed the sale of non-core assets for $16.4 million.
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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.
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