TORONTO, ON --
December 6, 2018 -- InvestorsHub NewsWire -- FSD Pharma
Inc. (“FSD Pharma”) (CSE: HUGE) (OTCQB: FSDDF) (FRA: 0K9), which,
through its wholly-owned subsidiary, FV Pharma Inc. (“FV Pharma”),
is a licensed producer pursuant to the Cannabis Act,
announced today that it has entered into a definitive Collaboration
and License Agreement (the “Agreement”) with World Class
Extractions Inc. (“World Class”), a company that has developed a
unique extraction process designed to produce quality, potent
cannabis extracts. World Class is also in the process of completing
its own previously announced reverse takeover of CBD Med Research
Corp. (the “RTO”), and submitted its initial listing application to
the Canadian Securities Exchange (the “CSE”) late last week.
Under the terms of the agreement and a related lease, FSD Pharma
will provide World Class with space at its 620,000 square foot
facility in Cobourg, Ontario (the “FSD Facility”), assist it in
obtaining an extraction license from Health Canada, and provide
World Class with the raw cannabis needed to produce cannabis
extracts. In return, World Class will provide FSD Pharma with
certain royalty rights over the profits derived from the sale of
those cannabis extracts.
FSD Pharma will provide
World Class with up to 5,000 square feet of space at the FSD
Facility (the “World Class Premises”). World Class will build and
install, at its expense, its own manufacturing facility within the
larger FSD Facility, at which it intends to extract and process CBD
enriched oil and other extracts (the “World Class Products”). In
addition, FSD Pharma will assist World Class in preparing an
application to Health Canada under the Cannabis
Act to obtain the necessary license (the “License”) to
carry out its cannabis extraction activities. In particular, FSD
Pharma will assist with the following components of the
application:
a) drafting, or
coordinating drafting of, all application
materials;
b) sourcing all necessary
third-party consultants required to prepare the application,
and;
c) communicating with
Health Canada throughout the application process.
FSD Pharma will, through FV
Pharma, also provide World Class with substantial assistance in
producing the World Class products. During the period prior to
World Class obtaining the License, the parties will produce the
World Class products under a license that FV Pharma intends to
obtain. In addition, FSD Pharma will provide World Class with all
of the raw cannabis needed to produce the World Class Products,
both before and after World Class obtains the
License.
As consideration for the
significant assistance provided by FSD Pharma, there will be no
capital obligations required. All considerations will be paid in
the form of a tolling fee structure whereby World Class will retain
7% of the value of all World Class Products produced at the World
Class Premises, which will be payable, at World Class’s option, in
cash or World Class Products.
Rupert Haynes, CEO of FSD
Pharma commented, “FSD Pharma has entered into this agreement to
take advantage of World Class’s proprietary WCE Technology, which
we believe provides us with a competitive advantage due to its
unique benefits, such as the ability to process live and wet
cannabis plants in their entirety. Under the terms of the
agreement, we will have access to the highest quality CBD extracts
produced from our own indoor, hydroponically-grown cannabis plants.
We intend to work closely with the World Class team to help
expedite the application process and the granting of the company’s
extraction license from Health Canada.”
Michael McCombie, CEO of
World Class stated, “Setting up our operations in the FSD Pharma
facility ensures that we have access to both a steady supply of
quality cannabis plants for processing and to a team of experts in
the license application process. We expect to be listed on the CSE
shortly and will be setting up our operations at the FSD Pharma
facility in early 2019. This is an exciting time for World Class to
be entering the cannabis marketplace with our patent-pending
proprietary WCE technology and to be supplying the growing market
for CBD extracts.”
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’s phase one growth plan involves the
development of 25,000 square feet of indoor grow space at its
Ontario facility and an additional 220,000 square feet, which
pending approval by Health Canada, is expected to be operational in
the first quarter 2019.
FSD facilities sit on 72
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 of cannabis having
received its cultivation license under the Access to Cannabis for
Medical Purposes Regulations (ACMPR) on October 13, 2017 and is now
operating under the recently enacted Cannabis Act. FV Pharma 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.
About World
Class
World Class was
incorporated under the Business Corporations
Act (Ontario) on January 25, 2018 as a private company.
World Class has developed a unique extraction process to produce
quality, potent cannabis extracts. The extraction technology (the
“WCE Technology”) uses ultrasound to effectively produce extracts
from cannabis and hemp and isolate essential compounds found in
plant material. The WCE Technology has a number of advantages over
conventional extraction methods, including the ability to: (i)
produce higher concentrated compounds; (ii) process larger volumes
of cannabis or hemp; (iii) utilize undried cannabis or hemp in the
process; (iv) utilize all parts of the cannabis or hemp plants,
and, (v) reduce production time.
Forward-Looking
Information
Neither the
Canadian Securities Exchange nor its regulation services provider
accept responsibility for the adequacy or accuracy of this
release.
Certain
statements contained in this press release constitute
forward-looking information. These statements relate to future
events or future performance. The use of any of the words "could",
"intend", "expect", "believe", "will", "projected", "estimated" and
similar expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on the Corporation's current belief or
assumptions as to the outcome and timing of such future events.
Actual future results may differ materially. In particular, this
release contains forward-looking information relating to the
development of the Corporation's indoor cannabis facility and its
business goals and objectives. The forward-looking information
contained in this press release is made as of the date hereof, and
the Corporation 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
applicable securities laws. 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.
Contacts
Zeeshan Saeed, President
and Founder, FSD Pharma Inc.
Email: zeeshan@fsdpharma.com
Telephone: (416) 854-8884
or
Investor Relations
Email: IR@fsdpharma.com
Website: www.fsdpharma.com
or
Media Relations
Ned Berkowitz
Email: Ned.Berkowitz@russopartnersllc.com
Tel: (646) 942-5629