TORONTO – FSD Pharma Inc. (CSE: Enormous) (OTCQB: FSDDF) (FRA: 0K9) (“FSD Pharma” or the “Company”) and Prismic Pharmaceuticals Inc. (“Prismic”), a US-primarily based specialty R&D pharmaceutical organization (the “Parties”), announced now that, on June 28, 2019, they finalized the acquisition by FSD Pharma of all of the issued and outstanding securities of Prismic (the “Transaction”). Pursuant to the terms of a previously-announced securities exchange Agreement, FSD Pharma has acquired all outstanding widespread and preferred shares of Prismic for an aggregate obtain price tag of about US$17.five million (CAD$23.four million primarily based on an exchange price of US$1 to CAD$1.3349), happy by the issuance of about 102.7 million Class B subordinate voting shares in the capital of FSD Pharma (each and every, an “FSD Share”) at a deemed price tag of CAD$.2275 (US$.1704) per FSD Share. In addition, FSD Pharma has agreed to assume about US$three.05 million of outstanding Prismic lengthy- and quick-term liabilities. All of the outstanding Prismic stock alternatives and warrants have been converted into alternatives and warrants to obtain FSD shares, with the quantity and physical exercise price tag of such securities obtaining been adjusted in accordance with the exchange ratio below the Agreement.
The FSD Shares issued to the former Prismic shareholders have been deposited into escrow at the closing of the Transaction, and are topic to an 18-month staggered release.
FSD Pharma will continue to be led by Raza Bokhari, MD, Executive Co-Chairman & CEO. Zachary Dutton, co-founder of Prismic, will continue to serve as the CEO of Prismic, reporting to Edward Brennan, Jr. MD, FACS, President of the FSD Biosciences Division. Peter Moriarty, co-founder and prior Chairman of the Board of Prismic, has been named Chairman of the newly-formed FSD BioPharmaceutical Sector Advisory Board.
Dr. Raza Bokhari, Executive Co-Chairman and CEO stated, “On behalf of the FSD Pharma shareholders and Board of Directors, it is with immense pleasure that I welcome Prismic shareholders and stakeholders to the FSD Pharma family members. More than the previous quite a few weeks, Dr. Brennan and our M&A group have worked pretty closely with the Prismic leadership to finalize this transaction below price range and ahead of schedule. I will have to commend Dr. Brennan on his laser sharp concentrate and interest to detail and I will have to also express my unique gratitude to Zach Dutton and Peter Moriarty for their efforts in resolving some outstanding problems to close the transaction.”
Dr. Bokhari continued, “The Prismic acquisition represents strategic depth in the vision and mission of FSD Pharma and signals a paradigm shift in the general outlook of the organization. We are relying heavily on the experience of Dr. Brennan, who is a seasoned pharmaceutical business veteran with substantial practical experience from operating at Glaxo Smith Kline and Johnson & Johnson to navigate us via the several stages of the FDA approval method for drug improvement, with the target of sooner or later producing synthetic cannabinoid prescription drugs offered for industrial use to aid alleviate the discomfort and suffering of sufferers. We are confident, Peter Moriarty, an additional nicely-identified pharmaceutical business veteran, who was also one particular of the founders of Shire Pharmaceuticals, will make a meaningful contribution to the FSD Pharma story as the Chairman of the BioPharmaceutical business advisory board.”
About FSD Pharma
FSD Pharma is focused on the investigation and improvement of novel cannabinoid-primarily based treatment options for quite a few central nervous program problems, which includes chronic discomfort, fibromyalgia and irritable bowel syndrome and on the improvement of the highest top quality indoor grown, pharmaceutical grade cannabis. The Enterprise is licensed to cultivate cannabis in about 25,000 square feet.
FSD’s wholly-owned subsidiary, FV Pharma, is a licensed producer below the Cannabis Act and Regulations, obtaining received its cultivation license on October 13, 2017 and its complete Sale for Healthcare Purposes license on June 21, 2019. FV Pharma intends to cover all elements of the cannabis business, which includes cultivation, legal, processing, manufacturing, extracts and investigation and improvement. For further facts on the organization, please pay a visit to our internet site at www.fsdpharma.com.
About Prismic Pharmaceuticals
Prismic is a US-primarily based specialty pharmaceutical organization devoted to addressing the opioid crisis by establishing novel non-addictive prescription drugs for the therapy of discomfort, inflammation, and neurological problems, primarily based on formulations using the company’s micro-PEA improvement platform (palmitoylethanolamide with particle sizes of .six – 10 microns). Such formulations take benefit of micro-PEA’s “synergistic” or “entourage” impact on specific drugs impacting the endocannabinoid program. This indicates that reduce doses of these drugs might be administered collectively with micro-PEA to attain the preferred therapeutic impact. This incorporates the possible mixture or concomitant use of micro-PEA formulations with drugs such as THC, CBD, specific anticonvulsants, and opioids exactly where research have indicated opioid-sparing and tolerance delaying properties of micro-PEA might effect the improvement of dependence in sufferers. Prismic’s 1st prescription drug candidate, PP-101, a 600 mg tablet of micro-PEA, is anticipated to commence a Phase two/three accelerated clinical improvement plan in 2020 as a concomitant medication to be administered with pregabalin (Pfizer’s Lyrica®️) for the therapy of fibromyalgia.
Prismic was founded by 3 healthcare business veterans, Zachary Dutton, Danilo Casadei Massari, and Peter Moriarty, who was also one particular of the founders of Shire Pharmaceuticals.