FSD Pharma (CSE: HUGE) (NASDAQ: HUGE) this morning announced that it is going all in on the ongoing coronavirus pandemic, and as a result, is closing down its FV Pharma subsidiary. FV Pharma currently holds a Health Cannabis license to cultivate cannabis, which it intends to forfeit.
Specifically, the company has notified Health Canada that it will forfeit the license and suspend all cannabis related activity within 30 days. All related cannabis assets are in the process of being liquidated, which includes the sale of the firms production facility in Cobourg, Ontario.
In making the decision, CEO Raza Bokhari commented that shareholder value is, “best servied in closing down our medicinal grade cannabis operation .. and reinforcing steps to advance pharmaceutical R&D efforts on our lead compound FSD201.” The company currently intends to submit an investigational new drug application to the FDA for the use of this compound in the treatment of COVID-19.
The announcement marks the end of what was considered a highly controversial operation when it comes to the cannabis space. The Deep Dive covered the story extensively, from the questionable size and scale of the facility, to the share consolidation that effectively wiped many shareholders out. It appears that the controversy was not without merit, given that the company has now walked away from its cannabis aspirations entirely.
FSD Pharma last traded at $5.03 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.
