HUGE - FSD Pharma closes sale of cannabis facility for C$16.4M to focus on biotech business

FSD Pharma (NASDAQ:HUGE) said it closed the sale of its cannabis processing facility in Cobourg, Ontario for gross proceeds of C$16.4M in cash. The company said the sale, which completed on May 6, included a 26.1-hectacre parcel of land and 50.8K square-meter building, which FSD acquired in November 2017 for $5.5M. Net proceeds from sales were ~$15.48M in non-dilutive cash. The company said the facility was non-essential to its business model upon a decision in early 2020 to exit the cannabis production market and to focus as a biotech, advancing drug candidates for disorders as muscular sclerosis, depression, and inflammatory disorders. "Combined with our existing cash on hand, we are sufficiently capitalized for operations through 2025, inclusive of budget allocations for planned clinical trials and without having to look to the capital markets for any additional funds," said FSD's Interim CEO and Co-Executive Chairman Anthony Durkacz. The company noted that its current cash

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FSD Pharma closes sale of cannabis facility for C$16.4M, to focus on biotech business