FSD Pharma Sells Cannara Biotech Stake, Netting More Than $7.7M
FSD Pharma Inc (NASDAQ:HUGE) has netted itself more than $7.7 million through the sale of its 12% equity interest in Cannara Biotech Inc (OTC:LOVFF) to a consortium of that included entities controlled by members of the Cannara board and senior management.
A substantial portion of FSD Pharma's stake in Cannara was subject to a statutory escrow expiring December 2021. Under the terms of the deal, the buyers agreed to acquire FSD Pharma's interest subject to escrow and, as such, assumed all of the associated market risk.
The transaction represents a 670% return on FSD's investment in Cannara.
According to Raza Bokhari, executive co-chairman and CEO of FDS, the transaction was a first step of many to strengthen the company's cash position. FSD Pharma plans on scaling up to $50 million in disposable cash through monetizing their non-cash assets and raising new capital from institutional and institutional grade investors in the U.S. and elsewhere, he said.
Lead image by Ilona Szentivanyi. Copyright: Benzinga.
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