FSD Pharma Investments Pay Off Amid Robust Expansion at Ontario Facility -- CFN Media

May 08, 2019 7:30 AM EDT | Source: CFN Media Group

Seattle, Washington--(Newsfile Corp. - May 8, 2019) - CFN Media Group ("CFN Media"), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article discussing FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSSDF). The company reported its fourth quarter financial results following a major year of accomplishments. Based in Cobourg, Ontario, the company's massive former Kraft Foods facility sits on 72 acres of land with nearly four million sq. ft. of expansion capacity. Management projects that the facility could generate upwards of 400 million grams of dried cannabis flower per year at full capacity.

The company secured both cultivation and sales licenses for the facility earlier this year, which has opened up the door to 'robust expansion' opportunities. In partnership with tenants, like Canntab Therapeutics Ltd., the company leases manufacturing space in exchange for a royalty on sales and rights to the Canadian market. This business model limits its capital expenditures and could generate high margin revenue.

The company's other partnerships include World-Class Extractions, a cannabis extraction company, and Pharmastrip Corp., a developer of cannabis-infused oral thin film strips.

"After receiving the sales license for medicinal cannabis in April 2019, we are tightly focused on developing a robust expansion plan at our Cobourg, Ontario facility under the leadership of Dr. Sara May," said Executive Chairman and CEO Dr. Raza Bokhari in the company's recent press release announcing its fourth quarter results. "Finalizing the next phase of expansion, with drawings, a construction budget and timeline is our top priority."

  • FSD Pharma's strategic investment portfolio valued at $18 million after a market-to-market unrealized gain of $10 million.

  • Management remains tightly focused on 'robust expansion' plan at its Cobourg, Ontario facility under the leadership of Dr. Sara May.

  • Balance sheet includes $22 million in cash, as of December 31, 2018, with total net assets in excess of $50 million with no long-term liabilities.

  • New auditing firm hired ahead of listing on the New York Stock Exchange.


Growing Investment Portfolio

FSD Pharma recorded a $10 million unrealized gain on its strategic investment portfolio, which includes companies like Solarvest Inc. These strategic investments don't necessarily generate top-line revenue or bottom-line profits on its financial statements, but help bolster its balance sheet with assets that provide investors with greater diversification than other companies focused exclusively on cultivation or retail.

Earlier this month, the company announced a definitive collaborative research and development agreement with Solarvest. The agreements stipulates that Solarvest will conduct research using its algae-based expression technology to develop pharmaceutical-grade cannabinoids. FSD Pharma has the option to enter into an exclusive license agreement over a subset of the project and receive royalty rights over all the products that result.

"At FSD Pharma, we continue to explore new areas of science and are committed to identifying novel cannabis cultivation methods for medical purposes," said Dr. Raza Bokhari. "If successful, these alternative methods could dramatically disrupt current cannabis cultivation methods for medical purposes. That, and the potential to create significant value for our shareholders, is something we are very excited about."

The company's other strategic investments include Cannara, an aspiring licensed producer in Quebec, SciCann Therapeutics, a specialty pharmaceutical company, and High Tide Inc., a developer of lifestyle products.

Looking Ahead

FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSSDF) stands at a pivotal point in its corporate history. After receiving a sales license, the company can begin generating revenue over the near-term using a business model that could provide strong diversification and high margins. The company's strategic investment portfolio also contains several moon-shot concepts that could drive significant long-term shareholder value if successful.

In addition to these catalysts, the company continues to make progress in listing its shares on the New York Stock Exchange, which could open the door to greater liquidity.

For more information, visit the company's website at www.fsdpharma.com.

Please follow the link to read the full article on CFN:

https://www.cannabisfn.com/fsd-pharma-investments-pay-off-amid-robust-expansion-at-ontario-facility/

About CFN Media

CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.

Learn how to become a CFN Media client company, brand or entrepreneur: http://www.cannabisfn.com/featuredcompany

Download the CFN Media iOS mobile app to access the world of cannabis from the palm of your hand: https://itunes.apple.com/us/app/cannabisfn/id988009247?ls=1&mt=8

Or visit our homepage and enter your mobile number under the Apple App Store logo to receive a download link text on your iPhone: http://www.cannabisfn.com

Disclaimer

CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on http://www.cannabisfn.com (the 'Site') is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

Frank Lane
206-369-7050
flane@cannabisfn.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/44633

info