Vancouver, British Columbia--(Newsfile Corp. - February 6, 2019) - FSD Pharma Inc. (CSE: HUGE) (FSE: 0K9) (OTCQB: FSDDF), a licensed cannabis producer, has signed a non-binding letter of intent with Solarvest BioEnergy Inc. to develop and test the production of pharma-grade cannabinoids from algae.
Solarvest BioEnergy Inc. (TSXV:SVS), an algae technology company, has developed a platform capable of producing health products such as "Organic Omega 3 DHA" fruit gummies and food boosting powders, and has completed a feasibility study to produce CBD and THC cannabinoids in sterile GMP facilities.
Under the terms of the agreement, Solarvest will conduct research to develop pharma-grade cannabinoids. Once Solarvest successfully develops the Proof of Concept, it will grant FSD Pharma an exclusive, worldwide license over any use of the Project Cannabinoids to produce prescription drugs that can treat diseases affecting the central nervous system.
Following final agreements, FSD Pharma will issue Solarvest 10 million shares at a deemed price of $0.30 per share, and in return will receive 3 million units of Solarvest at a deemed price of $0.20 per unit. Solarvest will also issue FSD Pharma a convertible debenture in the amount of $2.4 million. For more details of the agreement, please refer to the news release of February 5, 2019.
Zeeshan Saeed, President and Co-Founder of FSD Pharma, stated: "If successful this could dramatically disrupt current cannabis cultivation methods for medical purposes. It could reduce the majority of time, space and costs associated with cannabis cultivation for medical purposes specifically cannabis with GMP Certification. We are very pleased to collaborate with Solarvest on the development of promising alternative methods of cannabinoid production using algal technology. We have been impressed by Solarvest's management knowledge and operations and believe that future commercial production of cannabinoids using their algal-based production platform combined with our proposed investment in Solarvest have the potential to create significant value for our shareholders."
Dr. Raza Bokhari, Executive Co-Chairman of the Board of Directors of FSD Pharma, added: "This is an exciting opportunity for FSD Pharma and is in line with our company's strategic direction. We are continuing to focus our attention and efforts on advanced synthetic cannabinoid R&D and production for the purpose of finding better treatment outcomes for certain diseases of the central nervous system, sleep disorders, certain skin conditions and also looking into effective ways of combating the scourge opioid epidemic in North America. We look forward to working with Solarvest and anticipate positive results from their research study using algae technology to produce pharma-grade bio-synthetic cannabinoids."
FSD Pharma through its wholly-owned subsidiary FV Pharma, is a licensed producer of marijuana. It 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.
Its facilities, the former Kraft plant, sit on 72 acres of land with 40 acres primed for development and an expansion capability of up to 3.9 million square feet. The company has 25,000 square feet available for production at its Ontario facility with an additional 220,000 square feet currently in development, at an estimated cost of $250 per square foot, scheduled for completion in 2019. FV Pharma management's mission is to transform the facility into the largest hydroponic indoor cannabis facility in the world.
The shares began trading on the CSE on May 29th and are currently trading at $0.345.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/42680