FSD Pharma Announces Settlement of Class Action Proceeding
October 29 2020 - 07:30AM
Business Wire
FSD Pharma Inc. (NASDAQ:HUGE) (CSE:HUGE) ("FSD Pharma" or the
"Company") today announced that, subject to court certification and
other customary conditions, it has entered into a definitive
settlement agreement (the "Settlement Agreement") with respect to
the class action litigation commenced by a plaintiff shareholder in
the Ontario Superior Court of Justice in February 2019 relating to
the build-out of its facility in Cobourg, Ontario (the "Settled
Action").
The Company entered into the Settlement Agreement in order to
avoid the expense, burden and inconvenience associated with the
continuance of the Settled Action. In entering into the Settlement
Agreement, the Company made no admissions of liability whatsoever.
The Settlement Agreement provides for a full and final release of
the Company, its officers, directors and various other related
parties from any and all claims that arose or could have arisen
from the claim issued by the plaintiff within the Settled
Action.
Pursuant to the Settlement Agreement, the Company will pay
C$5,500,000, approximately C$4,600,000 of which the Company expects
to be funded with the proceeds of insurance, leaving the Company
with a net payment of approximately C$900,000.
About FSD Pharma
FSD Pharma Inc. is a publicly-traded holding company, since May
2018.
FSD Pharma BioSciences, Inc., a wholly-owned subsidiary, is a
specialty biotech pharmaceutical R&D company focused on
developing over time multiple applications of its lead compound
FSD-201, by down-regulating the cytokines to effectuate an
anti-inflammatory response.
Forward-Looking Statements
Neither the Canadian Securities Exchange nor its regulation
services provider accept responsibility for the adequacy or
accuracy of this press release.
Certain statements contained in this press release constitute
"forward-looking information" and "forward-looking statements"
within the meaning of applicable Canadian and U.S. securities laws
(collectively, "Forward-Looking Information"). Forward-Looking
Information includes, but is not limited to, the expected insurance
recovery related to the Settled Claim.
The use of words such as "budget", "intend", "anticipate",
"believe", "expect", "plan", "forecast", "future", "target",
"project", "capacity", "could", "should", "focus", "proposed",
"scheduled", "outlook", "potential", "estimate" and other similar
words, and similar expressions and statements relating to matters
that are not historical facts, or statements that certain events or
conditions "may" or "will" occur, are intended to identify
Forward-Looking Information and are based on FSD Pharma's current
beliefs or assumptions as to the outcome and timing of such future
events. Such beliefs or assumptions necessarily involve known and
unknown risks and uncertainties that could cause actual results to
differ materially from those expressed or implied in such
Forward‐Looking Information. Certain of these risks and
uncertainties are described in the Company's continuous disclosure
filings available under the Company's SEDAR profile at
www.sedar.com and under the Company's EDGAR profile at www.sec.gov.
Forward‐Looking Information is not a guarantee of performance. The
Forward-Looking Information contained in this press release is made
as of the date hereof, and FSD Pharma is not obligated to update or
revise any Forward- Looking Information, whether as a result of new
information, future events or otherwise, except as required by law.
Because of the risks, uncertainties and assumptions contained
herein, investors should not place undue reliance on Forward
Looking-Information. The foregoing statements expressly qualify any
Forward-Looking Information contained herein.
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version on businesswire.com: https://www.businesswire.com/news/home/20201029005243/en/
Sandy Huard, Head of Communications, FSD Pharma, Inc.
sandy@fsdpharma.com (647) 864-7969
Zeeshan Saeed, President, FSD Pharma, Inc.
zeeshan@fsdpharma.com
Investor Relations IR@fsdpharma.com
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