FSD Pharma and World Class Extraction Cancel Agreement, Enter Letter of Intent for Joint Venture

FSD Pharma (CSE: HUGE) announced this morning a revised agreement with that of World Class Extractions (CSE: PUMP), wherein the two firms have entered a letter of intent to establish a joint venture for the purpose of providing extraction services at FSD Pharma’s Cobourg, Ontario facility. The new letter of intent supersedes the previous agreement entered into by the two parties.

FSD Pharma Logo
FSD Pharma Logo

Under the previous agreement, World Class was to obtain only a 7% royalty fee for all product produced at the facility, with FSD Pharma providing no initial cash outlay, aside from space at the property.

The new letter of intent entered between the two firms is much more beneficial than the previous iteration to that of World Class Extractions. The LOI will see a 50/50 joint venture entered into by the two firms, which will then enter a five year lease for 5,000 square feet of space at FSD’s facility.

World Class Extractions will then provide up to three of its Boss extraction systems to the joint venture, which will then be operated by FSD Pharma under their current processing license. All expenses and operating costs will be evenly split among the two parties.

The letter of intent will allow FSD Pharma to offer to the market oil based products to the medical space, as well as the potential to offer third party tolling services to other licensed producers.

FSD Pharma is currently trading at $0.095, up 5.56% on today’s news.

Information for this briefing was found via Sedar, and FSD Pharma. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.