FSD Synopsis (IMO)*
Accumulated shareholder deficit as of June 30,2021 of 114,015,669(source MD&A Sedar.com)
So what’s another 16 million in cash in Cash David?
This group has successfully burned through millions in pursuit of cannabis, PEA, growing weed from algae, IBS steady state….
Hey let’s break it down shall we?
And let’s do a little Davey recap…
“Post by DavidRosenbergon Feb 16, 2023 7:13pm
48 Views Post# 35291082
My thoughts
It’s new management since 2018 and all litigation is over. To compare dr Kotra and his team to that speaks for itself. You can’t blame stuff that happened 5 years ago to today”
Yet…From the website: “FSD Pharma was founded by Thomas Fairfull (retired), Zeeshan Saeed and Anthony Durkacz.”
Hmm 2/3 are still there and are major owners of the company
“Donal Carroll joined FSD Pharma as interim Chief Financial Officer in 2018 and was appointed to the position on a permanent basis in December 2019.”
CFO… thats pretty central
Your point was David?
So here is my brief history and MY thoughtsIMO of this company:
Do your own dd, and this is not advice…
FSD is formed by Anthony Durcasz and crew
They act as listing agents through their other company (First Republic) and get 28.7 million for this (1)
FSD blows the firms stated objective “to transform a former Kraft food plant into the largest hydroponic indoor cannabis facility in the world”
In fact, they give up thier licence to produce and and do not sell one ounce of weed
They spend millions on promotion, minimal on production, but a bunch of unrelated companies (thin strips which went bankrupt, and a objective of growing algae from weed…You get the picture
So basically spending money on promotion but little on actually doing anything and never sell even an ounce of weed
Losing money
Does a 201/1 reverse split, and the stock tanks 97%
Successful class action litigation under section 138.3 of the Ontario Securities Act (“OSA”) for misrepresentations in secondary market disclosure in which FSD is required to pay 5.5 million for alleged misrepresentations.
https://www.google.ca/amp/s/www.siskinds.com/context-is-everything-miller-v-fsd-pharma-inc/amp/
Other ventures which were paid for with shareholders money that we have information on or need updating(feel free to add to this working draft)
1. Strategic Investment in Pharmastrip Corp
FSD Pharma signed a definitive collaboration and profit-sharing agreement with Pharmastrip including a strategic investment of $1.5mm in Pharmastrip Corp.
OUTCOME: the fair value was determined to be $nil based on the financial position of Clover and the Company’s ability to recover its investment.
2. Strategic Alliance with SciCann Therapeutics
Clover Cannastrip Thin Film Technologies Corp. (“Clover”)
On September 6, 2018, the Company subscribed for $1,128,450 of equity units in a brokered private placement by Clove. As at December 31, 2020 and as at June 30, 2021, the fair value was determined to be $nil based on the financial position of Clover and the Company’s ability to recover its investment.
(ii) HUGE Shops
(iii) SciCann Therapeutics Inc.
The investment includes 117,648 shares based on the subscription price in May of 2018 and October of 2018 of C$17 per share.
Outcome: Awaiting results of trial
(iv) Solarvest BioEnergy Inc. (“Solarvest”)
On May 7, 2019, the Company acquired 3,000,000 common shares, 3,000,000 warrants and a convertible debenture at a principal amount of $1,805,520 for a total fair value of $2,256,900 of Solarvest in exchange for 49,751 Class B common shares of the Company with a fair value of $1,880,750 based on a market price of C$50.25 and recognition
Under the terms of the agreement, the Company has guaranteed a minimum liquidation value of its shares to Solarvest of $2,256,900 resulting in recognition of the derivative liability.
3. Acquisition of rights to PEAmicronized
And launches trial in COVID announcing "Commencing a phase 2 clinical trial to treat hospitalized COVID-19 patients is a major milestone achieved by our pharmaceutical team led by Dr. Edward Brennan and a huge step forward for FSD Pharma,2
FSD blows PEAm COVID Trial-after enrolling only 1 patient (maybe there were more but, not to my knowledge and they cancelled the trial
Meanwhile there has been HUGE dilution with all directors benefiting
Dr Raza takes a little more than the rest in this share dilution gorging amd gets sacked
1The group fractures and a dissident group of e “Concerned shareholders” look to turf Dr Raza “replacing the current board of directors (other than Anthony Durkacz)”3
Dr Raza contends : “Mr. Durkacz made a presentation to the Board regarding a self-serving plan to pull the Company backwards by acquiring a start-up notionally in the psychedelics sector that has no track record, cash, or research and development activities (the " Start-Up ").”4
This board is deluged by bots supporting the concerned shareholders
(That’s how bad it has been-quantity is one thing but this was absolute mad drivel)
July 27, 2021 they win and “FSD Pharma announces that the board of directors had terminated the employment of the Company’s Chief Executive Officer, Dr. Raza Bokhari for cause.
https://stockhouse.com/news/press-releases/2021/07/27/fsd-pharma-inc-announces-termination-of-chief-executive-officer-dr-raza-bokhari
August 25, 2021 FSD announces that it has “entered a definitive agreement to acquire 100% of the issued and outstanding shares Lucid Psycheceuticals Inc. (“Lucid”), a Canadian-based specialty psychedelic pharmaceutical company focused on the development of therapies to treat critical neurodegenerative diseases, for approximately US$9 million (CAD$11.3 million)”
https://stockhouse.com/news/press-releases/2021/08/25/fsd-pharma-announces-definitive-agreement-to-acquire-lucid-psycheceuticals
So if I get this right Anthony Durkacz and the new group decide that if FSD buys Lucid(Prtially owned by Durcaz )
So Lucid is partly owned by Durkacz and so its a related party transaction
(He helped do a financing for LUCID within the year ….then a freindly takeover)
Questions remain:
What exactly did they buy?
What is the evidence in HUMANS it works????
More forward looking statements-invest at your own peril
Get ready for a new financingIMO-spent on share buybacks and trials will e expensive
1.
https://seekingalpha.com/article/4234882-fsd-pharma-rollup-scattered-uneconomical-cannabis-investments-50minus-70-percent-downside
2. https://stockhouse.com/news/press-releases/2020/09/28/fsd-pharma-begins-phase-2-clinical-trial-to-evaluate-fsd201-for-the-treatment
3. https://stockhouse.com/news/press-releases/2021/04/26/concerned-shareholders-issue-information-circular-for-fsd-pharma-inc
4. https://stockhouse.com/news/press-releases/2021/05/03/fsd-pharma-issues-important-message-to-shareholders-and-response-to-dissident
+ https://seekingalpha.com/article/4234882-fsd-pharma-rollup-scattered-uneconomical-cannabis-
*I am not a financial advisor, and dont trust my advice, nor anyone in a stock board. This is a highly speculative investment where you could lose all of your capital. Do your own due diligence.
Talk to your financial advisor (and if they recommend a significant position in this company , get a second professional opinion)all IMO