InvestmentPitch Media Feature Video Discusses FSD Pharma and a Recent Commentary by CEO Raza Bokhari, MD - Video is Available on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - October 22, 2019) - Today's feature company is FSD Pharma Inc. (CSE:HUGE) (FSE:0K9) (OTCQB:FSDDD), which is focused on the research and development of novel cannabinoid-based treatments for several central nervous system disorders including chronic pain, fibromyalgia and irritable bowel syndrome, and on the development of the highest quality indoor grown, pharmaceutical-grade cannabis.
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Dr Raza Bokhari, Executive Co-Chairman and CEO of FSD Pharma, issued the following commentary on the fundamentals of the company.
"Canada's largest growers, Aurora, Canopy, Aphria and Green Organic Dutchman, combined can produce in excess of 1.5 million kilograms a year when at peak capacity, which is approximately 10X current production. Notwithstanding other regulatory and distribution challenges, as well as a thriving black market, the leadership at FSD Pharma realized early on in 2019 that this nascent industry is heading into a supply glut and major shortfall in sales.
FSD Pharma has tremendous production potential, nearly 4 million square feet of production space in one location that would make it the world's largest indoor facility. We however, forecasted the emerging industry challenges and astutely chose to protect shareholder value by deliberately not continuing to invest precious resources into an expensive build out of the Cobourg facility.
We terminated the agreement with Auxly in February 2019 which at the time was viewed by many as an error, but in hindsight the decision was seminal. This was not a popular decision. Left unchecked, the Auxly relationship would have generated yet another oversupply issue in the industry along with extensive expenses for buildout and HR requirements, putting us into a very precarious financial situation.
Conventional wisdom in the cannabis industry has favored growth over profitability. We at FSD Pharma chose measured growth - and controlled expenses - and were the first in the cannabis industry to do so. Now the rest of the cannabis industry is following the same path.
We at FSD Pharma are also the first in the cannabis industry that is doubling down in a big way to advance R&D of synthetic cannabinoids compounds and other synthetic compounds that target the endocannibinoid system of the human body through FDA approved clinical trials and hopefully would eventually commercialize in United States and around the world cannabinoid based prescription medications that would help alleviate pain and suffering of countless number of people, while targeting certain diseases of the central nervous system, some skin conditions and auto-immune musculoskeletal disorders.
To effectuate our plans of drug development we launched a Biosciences Division earlier this year and acquired Prismic Pharmaceuticals in United States for $17.5 million as a platform company and installed a world class expert in the field, Dr. Ed Brennan, as the President of the Division. We also assembled the most robust and highly qualified Scientific Advisory Board under the leadership of Dr. Larry Kaiser, President & CEO of Temple Health system.
We embarked on a plan to list on a major US exchange and retained Paul Weiss law firm to help us through the process. To increase our visibility in the US capital markets and list on a major US exchange, on October 11, 2019, we announced the largest stock consolidation in the history of Canadian stock exchange.
At this time, to some it doesn't look a very popular decision, but just like our decision to terminate the relationship with Auxly, the management firmly believes very soon it would be viewed as seminal and most time appropriate.
In summary, the fundamentals of FSD Pharma are strong.
- The company has no long-term debt
- The company has non-cash assets of over $72 million
- The company has just raised $4.5 million at a premium ($20.10 a share) with a major investment infusion by the CEO, Dr. Raza Bokhari, of US$1.5 million, whose entire compensation is based on stock option plan.
- The founders and insiders have also invested another $1 million
The company has a high-profile independent Board of Directors that also includes a Former member of US Congress, Steve Buyer. Steve Buyer has personally invested $250,000 at $20.10 a share in the company. His voting record in Congress was against legalization of marijuana, but he believes in the promise the synthetic cannabinoid molecule holds in alleviating pain & suffering through drug development based on FDA approved protocols."
For more information, please visit the company's website, www.fsdpharma.com, or contact Zeeshan Saeed, President and Founder at 416-854-8884 or email firstname.lastname@example.org. For investor relations in Canada email IR@FSDpharma.com. In the United States, contact Miriam Weber Miller of LHA Investor Relations, who can be reached at 212-838-3777 or by email at MMiller@lhai.com.
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