Evidently, the management team over at FSD Pharma (CSE: HUGE) (NASDAQ: HUGE) thinks its doing a great job. On Monday, the company filed a notice of issuance of listed securities form with the Canadian Securities Exchange, indicating $5.2 million worth of shares had been issued by the company. The kicker, is that the issuance was directly to the firms executive team.
The notice of the share issuance was discreetly listed at the bottom of a July 31, 2020 news released filed by the company, in connection with a US $10 million registered direct offering. At the time, 1,322,927 Class B common shares of the issuer were to be issued to its directors and management team as compensation. That figure however climbed to 1,692,182 Class B common shares by the date of issuance – growing the firms share count by 15.7% in the process.
The largest distribution went to the firms CEO, Raza Bokhari, whom received 805,802 shares in total, or roughly half of the issuance, at a deemed price of $3.1025, the equivalent of $2.5 million. Issuance’s to other members of management was rather sporadic, with some directors and executives not receiving any shares at all.
Each of Edward Brennan, Steve Buyer, Donal Carroll, Robert Claruffoli and David Urban received 80,580 shares in the issuance, while Zeeshan Saeed and Anthony Durkacz received 161,160 shares. Director Gerry Goldberg received the smallest issuance, at 32,232 shares.
Statements made in connection with the filings make it unclear whether the issuance of common shares was in lieu of cash compensation, or if it was viewed as being a bonus.
FSD Pharma last traded at $3.76 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.