Opinion on todays news release fsd Pharma spinoff OK time to do some opinion on this mornings news release :
FSD Pharma Announces Plan to Spin-Out Subsidiary as Distribution to Shareholders; Shareholder Meeting Scheduled for June 29, 2023
basically FSD is having a meeting on june 29th to vote upon an approval for creating a second company under FSD Pharma's wing that will also be a publicly traded company. Class A Shareholders basically have the power to do this, It will be a separate entity i think . the name of the company is yet to be reviled it wont be called "pubco" as in the news release which is confusing legal terminology.
For each FSD Pharma share that we hold you will get a free share of the spin off company. So if you have 1000 FSD Pharma shares you will get 1000 free shares of the new company which will also be trading on the stock market but as a separate entity from my understanding.
You will still have your FSD Pharma shares , plus an additional amount equaling to the amount of FSD Shares that you have .
So 1000 FSD Pharma shares and another free 1000 shares of the spin off company which we won't know what it is until they do the meeting and if they approve the spinoff.
So you will have double shares one of FSD Pharma and another equal amount in the spinoff company which we know nothing about yet.
Shareholders must hold FSD Share as of the Distribution Date to qualify to receive shares of Pubco in the distribution. FSD Pharma will provide further updates on the Distribution Date in due course.
Interesting developments as we go into the summer months.
Good luck guys