InvestmentPitch Media Video Discusses FSD Pharma's Definitive Agreement to Acquire 100% of Lucid Psycheceuticals Inc. - Video Available on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - August 26, 2021) - FSD Pharma Inc. (NASDAQ: HUGE) (CSE: HUGE) (FSE: 0K9A), a life sciences holding company dedicated to building a portfolio of assets and biotech solutions in legal psychedelics and medical cannabis, has signed a definitive agreement to acquire 100% of Lucid Psycheceuticals Inc.
Founded in 2020, Lucid Psycheceuticals ( www.LucidPsycheceuticals.com ), a Canadian-based specialty psychedelic pharmaceutical company, is developing novel molecules and combinations with the goal of addressing Total Brain Health and targeting some of the most challenging neurodegenerative diseases, such as Multiple Sclerosis, and other brain conditions.
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Lucid has exclusive worldwide licensing rights from the University Health Network, North America's largest health research organization, to a patent-protected family of new chemical entities (NCEs), on which Lucid's development platform is based and from which its lead neurodegenerative disorders therapeutic candidate, Lucid-21-302, has been derived. In addition, Lucid's pipeline includes Lucid-201, a psychedelic drug candidate targeting mental health disorders, and it is also investigating certain cannabinoids.
Anthony Durkacz, Interim CEO, stated " The acquisition of a distinctive company like Lucid illustrates FSD Pharma's vision to build a portfolio of biotechnology assets on a new frontier of medicine that hold the potential to treat mental health disorders and neurodegenerative diseases in a new way. Lucid has successfully developed a strong pipeline of novel therapeutic compounds - supported by IP in order to advance to future clinical trials - and we are confident that the experience the Lucid leadership team brings will allow us to immediately start the process towards clinical trials to further advance these promising therapies. This is an exciting venture for FSD Pharma that we believe represents a paradigm shift in the development and outlook of our company ."
To close the acquisition, FSD Pharma will issue approximately 4.5 million shares with a deemed aggregate purchase price of approximately US$9 million at a deemed price of US$2.00 per share. The number of shares may be adjusted slightly in the event the market price of the FSD shares change significantly prior to closing of the transaction. Additionally, all of the outstanding Lucid stock options and warrants will become exercisable into FSD Shares, with the number and exercise price of such securities to be adjusted in accordance with the transaction's exchange ratio.
Lucid shareholders holding approximately 44% of the shares of Lucid, will be entering into lock-up agreements. The closing of the transaction, expected to occur in September, is subject to customary closing conditions including, among other things, Lucid obtaining the required shareholder approval.
Lucid's co-founder and CEO, Dr. Lakshmi Kotra will be taking on the role of leading the development of FSD Pharma's drug development pipeline in Psychedelics and Medical Cannabis. Dr. Kotra is a Professor of Medicinal Chemistry at the University of Toronto, and senior scientist at Krembil Brain Institute at the University Health Network.
Prof. Lakshmi Kotra, co-founder and CEO of Lucid, added: " We started with a vision to accelerate therapies for Total Brain Health. Since inception, we have made significant progress and built a strong scientific and execution team. We are excited to enter a new phase of growth with FSD Pharma. I am personally delighted with FSD Pharma leadership's shared commitment to bring forward advanced therapeutics addressing challenging health issues. We believe our combined resources and experienced teams will position us to enter clinical development programs to deliver highly effective therapeutic products in neurodegenerative disorders and mental health areas ."
FSD is actively pursuing additional potential acquisition targets in the healthcare and biotech space to bring innovative treatments to market to treat various mental health disorders and neurodegenerative diseases.
The shares are trading at $2.34 on the Canadian Securities Exchange. For more information, please visit the company's website, www.FSDpharma.com , or contact Zeeshan Saeed, President, at 416-854-8884 or by email at zeeshan@FSDpharma.com .
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/94524 .