failure to advance goals
Failure to Advance Stated FSD Management Goals
Following an attempted strategic refocus in March 2020, Dr. Bokhari and the Board identified several key goals:
(i) conducting a phase 2 clinical trial for the use of the Company’s lead compound in COVID-19 patients (the “Phase 2 Clinical Trial”), (ii) disposing of unnecessary assets, including the 620,000 square-foot cannabis processing facility in Cobourg, Ontario (the “Cobourg Property”) that has become obsolete under the new business plan and (iii) identifying strategic acquisition opportunities to diversify the Company’s business lines. In particular, the Board concluded that a strategic acquisition was an effective way to deploy the Company’s substantial cash reserves to accelerate the transition into a pharmaceutical and biotechnology company. To date, Dr. Bokhari and the Board have failed to achieve any of these objectives: (i) while the Phase 2 Clinical Trial was approved in September 2020, so far the Company has announced the enrollment of only one patient, out of an “expected” 352 patients, without providing specifics on any further enrollment, (ii) while the Company listed its Cobourg Property for sale in the first quarter of 2020, it remains unable to dispose of the property, and (iii) management has failed to identify any appropriate strategic acquisition opportunities, instead attempting (and failing) to execute transactions in unrelated industries and without adequate diligence.