FSD Pharma Inc. (CSE:HUGE), one of the Canadian marijuana stocks, said its subsidiary has received its Standard Processing License
SmallCapPower | February 25, 2019: FSD Pharma Inc. (CSE:HUGE), one of the Canadian cannabis stocks, Tuesday announced that its wholly-owned subsidiary, FV Pharma Inc, has received its Standard Processing License. As per the new Cannabis Act regulations of Health Canada, any facility that is processing more than the equivalent of 600 kg of dried flowers per year is required to have the Processing License.
FSD Pharma Executive Co-Chairman and Interim CEO Dr. Raza Bokhari said, “This is a milestone for our Company and is welcome news for our Cobourg facility. Receiving the Processing License allows the Company to begin packaging cannabis for inspection by Health Canada. Effectively, this is the next step to applying for a pre-sale inspection, which we expect will be scheduled very soon. With the pre-sale inspection just around the corner, we anticipate receiving our sales license and begin generating a revenue stream.”
FSD Pharma is involved in developing indoor pharmaceutical-grade cannabis and focuses on the research & development of novel cannabinoid-based treatments for central nervous system disorders such as chronic pain, fibromyalgia and irritable bowel syndrome. The Company holds a 25,000 sq. ft. area for production at its Ontario facility. Moreover, FSD Pharma has an additional 220,000 sq. ft. currently in development (with an estimated cost of $250 per sq. ft. to be completed in 2019). Additionally, FSD Pharma Inc’s facilities sit on 72 acres of land with 40 acres primed for development and an expansion capability of up to 3,896,000 sq. ft.
FSD Pharma stock trades at a market capitalization of C$371 million with a price-to-book multiple of 5.82x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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