FSD Pharma (CSE: HUGE) (NASDAQ: HUGE) last night issued a corporate update, indicating that it has fired the president of the company, Zeeshan Saeed, for cause. The company however did not indicate what specifically the justification for the termination was however.
In connection with his termination, which is effective immediately, Saeed is deemed to have resigned from all other positions with the company and its subsidiaries as well. This includes his role on the firms board of directors.
While not stated specifically, it is believed the termination may be in connection with a contested shareholders meeting. The company subsequently announced last night within the same release that a requisition for a special meeting was submitted to the company by certain shareholders, whom hold in excess of 5.1% of the firms 19.2 million outstanding Class B subordinate shares.
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Shareholders involved within the requisition include Zeeshan Saeed as well as that of Anthony Durkacz, whom is a director of the firm. While their Class B portion of the shares may remain small, each of them also hold 24 Class A multiple voting shares, while the firms CEO and Executive Chairman, Raza Bokhari, also owns 24, with a total of 72 of Class A shares being outstanding. Each Class A share amounts to 276,660 votes. Effectively, this gives Saeed and Durkacz control of the company if they elect to work together.
The requisitioning shareholders evidently are looking to reduce the size of the firms board of directors to five, while replacing six of the incumbent directors, which includes Executive Chairman Raza Bokhari. The shareholders will then select three directors for the board. Effectively, it appears that the shareholders are not satisfied with the direction of the company, and as a result are looking to take control.
FSD Pharma last traded at $2.75 on the CSE.
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.
