TORONTO–(BUSINESS WIRE)–PRESS RELEASE–FSD Pharma Inc. has announced the sale of 5.0 million common shares of Pharmadrug Inc. (CSE:BUZZ) (formerly Aura Health) in a privately negotiated transaction at C$0.08 per share for cash proceeds of C$400,000. Under the terms of the sale, the buyer has the option through June 26, 2020 to purchase an additional 5.0 million shares of Pharmadrug at C$0.10 per share from FSD Pharma for cash proceeds of C$500,000. Additional transaction details can be found on the SEDI website at www.sedi.ca/sedi/.
FSD Pharma’s equity position of 13.5 million Pharmadrug shares was established in April 2019 as part of a share exchange transaction. The company may consider the divestiture of the balance of its equity stake in Pharmadrug through open market transactions.
« We are pleased to finalize this transaction as part of our continuing efforts to strengthen disposable cash on our balance sheet primarily to support our pharmaceutical R&D program. We plan to continue to shore up our cash position by strategically divesting non-cash assets, and raising new capital, either through private placement, debt financing or registered offering of our Class B subordinate voting stock,” stated Raza Bokhari, MD, Executive Co-Chairman and CEO.