Quantum BioPharma Ltd C.QNTM

Opinion on todays news release fsd Pharma spinoff

[DavidRosenberg]

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

[Bigmac4000]

Hmmmmm I'm a little confused not gonna lie. This is above my pay grade. I'm also a little intrigued. How can they create a company of zero value and allot matching shares to your original FSD shares without eventually getting rid of one or the other. The "PUBCO" company would have zero capital or value. Does that mean we get "1000" shares at zero value and keep FSD

[DavidRosenberg]

A reverse takeover (RTO) transaction, also known as a reverse merger or reverse IPO (initial public offering), is a type of corporate transaction where a private company acquires a publicly traded company, resulting in the private company becoming a publicly traded company without going through the traditional process of an initial public offering.   In a reverse takeover transaction, the

[Bigmac4000]

Ok, we are getting somewhere. So a currently unnamed private company is buying out FSD by purchasing the shares and giving us equal shares under the new name? Sorry, again this is above my knowledge.  That can't be the total story because it states we keep the FSD shares also. That's the part that confuses me. I understand being bought out by a private company and the shares being

[Walter333]

It's not a spin off it's a split off theres a difference. It's in my opinion that FSD will be using this tactic as a way to improve its waning balance sheet. Parent companies in this case FSD being the parent  company to pubco or whatever it will be called often offer incentivise in the form of premiums to aquire the newly formed company's stock. 

[Walter333]

A free share of what though? I would not trust this management as far as I could throw them. If this is being done for the parent companies balance sheet it may not end well IMO to@ Following the Spin-out Transaction, Pubco will become a @reporting issuer@ in the same jurisdictions in Canada that FSD Pharma is a reporting issuer, with a view to completing a reverse take-over transaction with a

[Walter333]