TORONTO - FSD Pharma Inc. (NASDAQ:HUGE)(CSE:HUGE)(FRA:0K9A), a biopharmaceutical company, has announced the approval by its board of directors of a debt settlement plan, which will see the company issuing shares to address $637,650 owed to creditors.
The settlement will involve the distribution of 545,000 Class B Subordinate Voting shares at a deemed price of $1.17 per share.
In addition to the debt settlement, the company has also approved the grant of 55,000 restricted share units (RSUs) to various consultants as part of its equity incentive plan. These RSUs will allow the holders to acquire Class B Shares of the company upon vesting.
FSD Pharma is engaged in the development of treatments for neurodegenerative and metabolic disorders, as well as alcohol misuse disorders, through its subsidiary Lucid (NASDAQ:LCID) Psycheceuticals Inc. The company's lead compound, Lucid-MS, is a patented new chemical entity aimed at preventing and reversing myelin degradation, which is a key factor in multiple sclerosis.
Furthermore, FSD Pharma has licensed a proprietary formulation designed to support liver and brain function and alleviate the effects of alcohol consumption to Celly Nutrition Corp., from which it will receive royalties.
The company continues to focus on research and development, aiming to create novel formulations for alcohol misuse disorders and other treatments for the healthcare sector. FSD Pharma also maintains a portfolio of strategic investments through its subsidiary, FSD Strategic Investments Inc., which includes loans secured by residential or commercial property.
The press release includes forward-looking statements that involve inherent risks and uncertainties. These statements are not guarantees of future performance and are subject to a number of known and unknown risks.
The company cautions that actual results may differ materially from those projected in the forward-looking statements due to various factors, including the early stage of drug development and the uncertain nature of the clinical development process.
The information presented in this article is based on a press release statement from FSD Pharma Inc. and is intended to provide a factual report on the company's recent announcements regarding debt settlement and share issuance.
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