Post by
Mil_Man54 on Aug 02, 2023 7:55am
And Investors Get Nothing
Pretty impressive press release....until you read the details;
"Pursuant to the terms of the Agreement, FSD will receive a 7% royalty on revenue from the Celly Nutrition, until a total in the amount of $250,000,000 has been paid to FSD Pharma, at which point the rate is reduced to 3%. In addition, the Company has issued FSD 100,000,000 common shares (deemed value $50,000) in the capital of the Company ("Common Shares") as a licence fee and has issued FSD an anti-dilution warrant, entitling FSD to exercise the warrant any point in the next five years to increase their holding in( the company to 25% for nominal consideration. Finally, the Celly Nutrition and FSD Pharma entered into a loan agreement, whereby FSD Pharma has agreed to loan the Celly Nutrition $1,000,000 on secured basis with a term of 3 years, which will bear interest at a rate of 10% per annum, payable on each anniversary."
So FSD gets $50K in shares and forks out $1M in a loan....what is that currently...about 30% of the money available right now....and they get a pathetic 7% in royalties....all from a formula they probably stole and will be successfully sued for....which will end the company....exactly how do investors benefit from this at any level?.....come on Rosenberg....lets here that spin.