TORONTO - FSD Pharma Inc. (NASDAQ:HUGE)(CSE:HUGE)(FRA:0K9A), a biopharmaceutical company, announced today that it has engaged Totaligent, Inc. for a 30-day market awareness campaign. Totaligent, with over 25 years of experience, will utilize its database of 32 million investors to connect with shareholders and potential investors through various channels, including email and social media.
The engagement, which commenced today, involves a $30,000 USD contract, payable in cash. Both parties reserve the right to terminate the agreement with a five-day notice. Totaligent's role is to enhance FSD Pharma's market presence and facilitate ongoing communication with the investment community.
In a separate move, FSD Pharma has settled debts with arm's length creditors by issuing 650,000 Class B Subordinate Voting shares at a deemed price of $0.30 per share, addressing an aggregate of $195,000 of amounts owing.
FSD Pharma focuses on developing treatments for neurodegenerative and metabolic disorders, as well as alcohol misuse disorders. Its lead compound, Lucid-MS, has shown promise in preclinical models for preventing and reversing myelin degradation, a key factor in multiple sclerosis.
The company also holds a 25.71% stake as of March 31, 2024, in Celly Nutrition Corp., which manages the over-the-counter version of FSD Pharma's unbuzzd™ product. A royalty agreement entitles FSD Pharma to 7% of unbuzzd™ sales until reaching a cumulative $250 million, after which the royalty decreases to 3%.
Furthermore, FSD Pharma maintains a tax loss carry forward of approximately CAD$130 million, which could offset future tax liabilities against profits. The company also continues to manage a portfolio of strategic investments secured by residential or commercial properties.
This news is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These statements reflect the company's current expectations and are subject to change. The company does not endorse any claims made in this press release regarding the medical or health benefits of its products, as these have not been evaluated by regulatory authorities.
In other recent news, FSD Pharma has seen a series of significant developments. The biopharmaceutical company secured a court judgment against its former CEO, Dr. Raza Bokhari, who was ordered to pay over CAD $2.9 million plus interest following a legal dispute.
Moreover, the company received approval from an Australian ethics committee to commence a Phase 1 clinical trial for its drug candidate, Lucid-21-302, aimed at treating multiple sclerosis.
FSD Pharma also inked an exclusive agreement with the University of Southern California (USC) to assess a novel dietary supplement technology for potential commercialization. This technology is expected to enhance the effectiveness of ingredients in unbuzzd™, a product designed to accelerate alcohol metabolism and improve mental alertness.
Furthermore, FSD Pharma received approval to begin its METAL-2 trial in the United States, which will explore treatments for acute alcohol intoxication. These developments are part of FSD Pharma's ongoing efforts in the biopharmaceutical sector, as the company continues to focus on innovative treatments for neurodegenerative and metabolic disorders, as well as alcohol misuse disorders.
InvestingPro Insights
In light of FSD Pharma's recent initiatives to enhance market presence and financial strategies, InvestingPro data provides a deeper understanding of the company's current market position. With a market capitalization of just $7.2 million, FSD Pharma is navigating through challenging financial waters, as indicated by its negative P/E ratio of -0.72, reflecting investor concerns about profitability in the last twelve months as of Q1 2024.
The company's stock has experienced significant volatility, with a 1-month price total return showing a sharp decline of 50.72%. This is further corroborated by the stock trading near its 52-week low, at approximately 9.64% of its high, and a price per share at the previous close of $0.17. The InvestingPro Fair Value metric suggests a valuation of $0.21, which may indicate potential undervaluation.
Despite these challenges, there are optimistic InvestingPro Tips for FSD Pharma. The company holds more cash than debt on its balance sheet, which could provide some financial flexibility moving forward. Moreover, analysts predict that the company will be profitable this year, which could signal a turnaround from the previous performance.
For readers looking to delve deeper into FSD Pharma's financial health and future prospects, InvestingPro offers additional insights. There are more InvestingPro Tips available at https://www.investing.com/pro/HUGE, which could help investors make more informed decisions. To take advantage of these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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