FSD Pharma Inc. Announces Termination of Chief Executive Officer Dr. Raza Bokhari for Cause
July 27 2021 - 8:47AM
Business Wire
Appoints Anthony Durkacz as Interim Chief
Executive Officer and Reinstates Zeeshan Saeed as President
FSD Pharma Inc. (Nasdaq: HUGE) (CSE:HUGE) (FRA:0K9) (the
“Company” or “FSD”) announced today that the board of
directors had terminated the employment of the Company’s Chief
Executive Officer, Dr. Raza Bokhari for cause.
As previously disclosed by the Company, Dr. Bokhari was placed
on administrative leave following the Company’s shareholder meeting
on May 14, 2021 while a special committee (the “Special
Committee”) comprised of two independent directors investigated
various concerns regarding Dr. Bokhari’s actions in his capacity as
the Company’s Chief Executive Officer. The Special Committee
retained an international law firm to act as its independent legal
advisors. Following the completion of its investigation, the
Special Committee made a recommendation to the Company’s board of
directors and the board unanimously determined to terminate Dr.
Bokhari’s employment with the Company for cause. Amongst several
findings made by the special committee and the international law
firm, only a few of the reasons for Dr. Bokhari’s termination are
misconduct including breaching court orders, the improper issuance
of shares, and attempts to misappropriate Company funds in breach
of his employment obligations. Anthony Durkacz, Zeeshan Saeed and
Donal Carroll, directors who have been named by Dr. Bokhari in
litigation, abstained from voting on the matter.
The Company’s board of directors has appointed Anthony Durkacz
as the Company’s interim Chief Executive Officer and Zeeshan Saeed
was reinstated as the Company’s President. “The Company now has the
benefit of a strong board of directors who bring with them
highly-relevant experience and knowledge,” said Anthony Durkacz. “I
look forward to continue working with them to restore FSD and
realize its full potential.”
Messrs. Durkacz and Saeed noted the progress the Company has
made since its last shareholder meeting in working toward the goals
stated by the concerned shareholders in their April 24, 2021
information circular. In particular, the Company (i) has
effectively renewed its focus on acquiring biotechnology assets and
is currently evaluating a number of strategic investment and
acquisition opportunities, (ii) engaged a prominent biotechnology
investment firm and is completing an audit of its Phase 2 Clinical
Trial to determine its viability, (iii) retained an independent
advisor to evaluate more broadly its principal drug compound,
ultramicronized palmitoylethanolamide (PEA), or FSD201, in order to
evaluate its current commercial viability, (iv) engaged a third
party to conduct a forensic audit of prior compensation and
expenses, (v) effectively resolved an outstanding claim against the
Company relating to a former employee and (vi) developed a more
robust investor relations function by engaging KCSA, to
better communicate FSD’s value to the investment community.
“As we move forward, we look forward to providing further
updates to shareholders in the coming weeks,” said Zeeshan Saeed,
the Company’s newly re-appointed President. “We remain committed to
fulfilling all of the strategic and operational goals outlined in
our communications to shareholders prior to the May 14, 2021
shareholder meeting.”
About FSD Pharma
FSD Pharma Inc. (www.fsdpharma.com) is a publicly-traded holding
company.
FSD BioSciences, Inc., a wholly-owned subsidiary, is a specialty
biotech pharmaceutical R&D company focused on developing
multiple applications of its lead compound, ultramicro PEA by
down-regulating the cytokines to effectuate an anti-inflammatory
response.
Forward Looking Information
Certain statement contained herein are “forward-looking
statements”. Often, but not always, forward-looking statement can
be identified by the use of words such as “plans”, “expects”,
“expected”, “scheduled”, “estimates”, “intends”, “anticipates” or
“believes”, or variations of such words and phrases, or states that
certain actions, events or results “may”, “could”, “would”, “might”
or “will” be taken, occur or be achieved. Forward-looking
statements contained in this press release include the comments
made with respect to the audit of the Company’s clinical trial, the
independent evaluation of the commercial viability of its principal
drug compound, the completion of a forensic audit of past
compensation and expenses and the statements made by Anthony
Durkacz and Zeeshan Saeed regarding restoring FSD and fulfilling
strategic and operational goals outlined in prior communications to
shareholders. FSD cannot give any assurance that such
forward-looking statements will prove to have been correct. The
reader is cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
document.
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version on businesswire.com: https://www.businesswire.com/news/home/20210727005702/en/
For additional information, please contact: Anthony Durkacz
adurkacz@fsdpharma.com Zeeshan Saeed zsaeed@fsdpharma.com
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