FSD Pharma Announces Strategic Business Developments
- Dr. Raza Bokhari appointed interim CEO
- Rupert Haynes departs as FSD Pharma CEO
- FSD Pharma terminates agreement with Auxly
TORONTO, February 6, 2019–(BUSINESS WIRE)– FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) (FRA: 0K9) (“FSD” or the “Company”), announced that its Board of Directors has concluded a strategic assessment of the Company and has implemented changes in leadership and business practices to optimize operations. Accordingly, the Company announced today that Dr. Raza Bokhari, Executive Co-Chairman, has been appointed interim Chief Executive Officer of FSD Pharma, effective immediately. Dr. Bokhari’s appointment follows the termination of Rupert Haynes.
To assist with the search for a pharmaceutical executive and other senior executives to lead FSD Pharma’s pharmaceutical business practices, the Company has hired Greg Button, Global Head of HealthCare recruiting at Korn Ferry, a leading global organizational consulting firm. Mr. Button has over two decades of experience placing C-suite executives into public and private equity-backed companies.
Additionally, the Company announced termination of a definitive agreement with Auxly Cannabis Group Inc. (“Auxly”) effective today, February 6, 2019. Under the terms of the agreement dated March 3, 2018, Auxly was obligated to develop all aspects of the Company’s cannabis cultivation facility in mutually agreed upon staged phases.
We are taking these momentous steps to unlock shareholder value and re-energize execution of our company’s vision. The Board believes the Company has unique and invaluable assets and is taking appropriate actions that will support long-term positive cash flow and shareholder value.
Dr. Raza Bokhari, Executive Co-chairman and Interim CEO of FSD Pharma
About FSD Pharma
FSD Pharma is focused on the development of the highest quality indoor grown, pharmaceutical grade cannabis and on the research and development of novel cannabinoid-based treatments for several central nervous system disorders, including chronic pain, fibromyalgia and irritable bowel syndrome. The Company has 25,000 square feet available for production at its Ontario facility with an additional 220,000 square feet currently in development (with an estimated cost of $250 per square foot to be completed in 2019).
FSD facilities sit on 70 acres of land with 40 acres primed for development and an expansion capability of up to 3,896,000 square feet.
FSD’s wholly-owned subsidiary, FV Pharma, is a licensed producer under the Cannabis Act and Regulations, having received its cultivation license on October 13, 2017. FV Pharma’s vision is to transform its current headquarters in a Kraft plant in Cobourg, Ontario into the largest hydroponic indoor grow facility in the world. FV Pharma intends to cover all aspects of this exciting new industry, including cultivation, legal, processing, manufacturing, extracts and research and development.