TORONTO – FSD Pharma Inc. (CSE: Big) (OTCQB: FSDDF) (FRA: 0K9) (“FSD Pharma” or the “Company”) and Prismic Pharmaceuticals Inc. (“Prismic”), a US-primarily based specialty R&D pharmaceutical business (the “Parties”), announced nowadays 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 typical and preferred shares of Prismic for an aggregate buy value of roughly US$17.five million (CAD$23.four million primarily based on an exchange price of US$1 to CAD$1.3349), happy by the issuance of roughly 102.7 million Class B subordinate voting shares in the capital of FSD Pharma (each and every, an “FSD Share”) at a deemed value of CAD$.2275 (US$.1704) per FSD Share. In addition, FSD Pharma has agreed to assume roughly US$three.05 million of outstanding Prismic lengthy- and quick-term liabilities. All of the outstanding Prismic stock selections and warrants have been converted into selections and warrants to buy FSD shares, with the quantity and workout value of such securities obtaining been adjusted in accordance with the exchange ratio beneath the Agreement.
The FSD Shares issued to the former Prismic shareholders had 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 Business 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 household. More than the previous numerous weeks, Dr. Brennan and our M&A group have worked extremely closely with the Prismic leadership to finalize this transaction beneath spending budget and ahead of schedule. I ought to commend Dr. Brennan on his laser sharp concentrate and interest to detail and I ought to also express my unique gratitude to Zach Dutton and Peter Moriarty for their efforts in resolving some outstanding challenges 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 all round outlook of the business. We are relying heavily on the experience of Dr. Brennan, who is a seasoned pharmaceutical business veteran with substantial expertise from operating at Glaxo Smith Kline and Johnson & Johnson to navigate us by way of the numerous stages of the FDA approval method for drug improvement, with the target of at some point creating synthetic cannabinoid prescription drugs obtainable for industrial use to support alleviate the discomfort and suffering of sufferers. We are confident, Peter Moriarty, yet another nicely-recognized pharmaceutical business veteran, who was also a single 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 analysis and improvement of novel cannabinoid-primarily based remedies for numerous central nervous technique problems, such as chronic discomfort, fibromyalgia and irritable bowel syndrome and on the improvement of the highest good quality indoor grown, pharmaceutical grade cannabis. The Business is licensed to cultivate cannabis in roughly 25,000 square feet.
FSD’s wholly-owned subsidiary, FV Pharma, is a licensed producer beneath 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, such as cultivation, legal, processing, manufacturing, extracts and analysis and improvement. For added details on the business, please go to our site at www.fsdpharma.com.
About Prismic Pharmaceuticals
Prismic is a US-primarily based specialty pharmaceutical business committed to addressing the opioid crisis by creating novel non-addictive prescription drugs for the remedy 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 particular drugs impacting the endocannabinoid technique. This suggests that reduced doses of these drugs might be administered with each other with micro-PEA to realize the preferred therapeutic impact. This involves the prospective mixture or concomitant use of micro-PEA formulations with drugs such as THC, CBD, particular 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 remedy of fibromyalgia.
Prismic was founded by 3 healthcare business veterans, Zachary Dutton, Danilo Casadei Massari, and Peter Moriarty, who was also a single of the founders of Shire Pharmaceuticals.