FSD Pharma Inc (NASDAQ:HUGE) (CSE:HUGE.CN) (FRA:0K9A) said it has sold 5 million Pharmadrug Inc (CSE:BUZZ) shares in a privately negotiated transaction at C$0.08 per share realising cash proceeds of C$400,000.
Under the terms of the sale, the buyer also has an option before June 26 to purchase an additional 5 million shares at a price of C$0.10 each from FSD for C$500,000.
READ: FSD Pharma closes out 1Q with C$8.4 million in cash after liquidating equity interest in Cannara Biotech
The company said it may consider the divestiture of the balance of its equity stake in Pharmadrug through open market transactions, having initially held 13.5 million Pharmadrug shares in April 2019.
In a statement, FSD Pharma managing director, executive co-chairman and chief executive Raza Bokhari said: "We are pleased to finalize this transaction as part of our continuing efforts to strengthen disposable cash on our balance sheet primarily to support our pharmaceutical R&D program. We plan to continue to shore up our cash position by strategically divesting non-cash assets, and raising new capital, either through private placement, debt financing or registered offering of our Class B subordinate voting stock."
FSD Pharma is a biotech firm which through its subsidiary FSD BioSciences is focused on developing a pipeline of FDA-approved synthetic compounds targeting the endocannabinoid system of the human body to treat certain diseases of the central nervous system and autoimmune disorders of the skin, GI tract, and the musculoskeletal system.
The company is also developing opioid-sparing prescription drugs through its Prismic Pharmaceuticals firm, as well as cannabis cultivation through another subsidiary, FV Pharma.
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