FSD Pharma (CSE: HUGE) (NASDAQ: HUGE) announced this morning that the firm has signed an amendment related to the collaborative research and development agreement previously announced with Solarvest BioEnergy (TSXV: SVS). The amendment is expected to “accelerated progress of the research project” entered into by the two groups.
However, details on how specifically this amended agreement is anticipated to improve the rate of speed of the project are unclear. under the amended agreement, FSD Pharma will be issuing to Solarvest an additional 225,371 class B subordinate voting shares valued at an estimated C$1.78 million, which will be used to fund the research project. In other words, those shares will likely be sold on the market as a means of continuing the project.
The research project itself is focused on utilizing an algae expression to modify algae for the production of pharmaceutical grade cannabinoids. The project is reportedly on-track, however the firm notes that it is costly. Dr Edward J. Brennan, currently head of FSD Pharma’s biosciences division has been appointed as a director of Solarvest as a result of the additional share issuance, and will also be providing oversight on the project.
Should the collaboration result in a marketable product, FSD Pharma is to be granted an exclusive worldwide license to “develop and commercialize prescription drugs that can treat diseases affecting the central nervous system” by that of Solarvest. THe firm will also receive a 5% royalty on certain products that are a result of the research project.
FSD Pharma last traded at $7.90 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.
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