HUGE - FSD Pharma signs licensing deal for alcohol detox drink Unbuzzd

2023-08-02 12:55:41 ET

Canada's FSD Pharma ( NASDAQ: HUGE ) said that it has signed a licensing deal with Celly Nutrition for exclusive rights to recreational applications of its hangover drink Unbuzzd and alcohol detoxification technology.

Under the deal, FSD will receive a 7% royalty on revenue from Celly Nu. After the royalties total $250M, the royalty rate will be reduced to 3%. FSD will also receive 100M shares of Celly Nu, worth around $50K, and warrants to buy up to 25% of the company for "nominal" consideration. FSD will also be loaning Celly Nu $1M.

FSD announced a tentative deal with Celly Nu , which appears to be a newly established entity, in June. The deal allows FSD to retain medical and pharmaceutical development rights to its alcohol detoxification technology.

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