FSD Pharma Inc. (CSE:HUGE), one of the Canadian marijuana stocks, said it has received its cannabis sales license
SmallCapPower | April 24, 2019: FSD Pharma Inc. (CSE:HUGE), one of the Canadian cannabis stocks, Monday announced that its wholly-owned subsidiary, FV Pharma Inc., has received its cannabis sales license from Health Canada. Effective April 18, 2019, the license allows the current FSD facility to supply and sell cannabis products, while an amended sales license, expected to be granted in the near future, will include the sale of dried and fresh cannabis flower.
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Following the announcement, shares of FSD Pharma surged 24% to close at C$0.28 on Monday.
FSD Pharma Executive Co-Chairman and CEO Dr. Raza Bokhari stated, “Our sales license is a key development for FSD Pharma and a huge success and step forward for our Cobourg Facility.”
FSD Pharma President and Founder Zeeshan Saeed said, “The granting of our sales license allows FSD to serve the growing medicinal use markets in Canada. We intend to quickly scale up production at our current facility, while continuing to build out the plant to add additional grow capacity. In addition, our sales license opens the door for our partner Canntab Therapeutics to commence sales of its suite of novel cannabis oral dose delivery platforms, including CBD and THC capsules, in Canada and global markets. We expect that this will provide an immediate benefit to both parties, since FSD is entitled to a share of Canntab’s revenue from sales as a result of the collaboration and profit sharing agreement that we entered into this past fall.”
FSD Pharma is engaged in developing indoor grown, pharmaceutical-grade cannabis as well as in 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 sq.ft. available for production at its Ontario facility with an additional 220,000 sq.ft. in development.
FSD Pharma stock currently trades at a market capitalization of C$388.6 million with a price-to-book multiple of 5.7x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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