FSD Pharma (CSE:HUGE, NASDAQ:HUGE) Inc is to buy Canada-based specialty psychedelic pharma group Lucid Psycheceuticals Inc in a stock deal worth around US$9 million (C$11.3 million).
The life sciences holding company said the acquisition provided it with new assets at the forefront of new medicine and represented a 'paradigm shift' in its development.
Founded in 2020, Lucid is developing novel molecules and targeting some of the most challenging neurodegenerative diseases, such as Multiple Sclerosis (MS), Alzheimer's and Parkinson's disease. It also has exclusive worldwide licensing rights from the University Health Network, North America’s largest health research organization, to a patent-protected family of new chemical entities (NCEs).
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"Lucid has successfully developed a strong pipeline of novel therapeutic compounds — supported by IP in order to advance to future clinical trials — and we are confident that the experience the Lucid leadership team brings will allow us to immediately start the process towards clinical trials to further advance these promising therapies," said Anthony Durkacz, the interim CEO of FSD Pharma (CSE:HUGE, NASDAQ:HUGE).
Professor Lakshmi Kotra, co-founder and CEO of Lucid, added: "We started with a vision to accelerate therapies for Total Brain Health. Since inception, we have made significant progress and built a strong scientific and execution team. We are excited to enter a new phase of growth with FSD Pharma."
The deal is by way of a three-cornered amalgamation between Lucid, FSD Pharma and a wholly-owned subsidiary of FSD Pharma.
Around 4.5 million Class B subordinate voting shares in the capital of FSD Pharma will be issued as consideration with a deemed aggregate purchase price of around US$9 million.
The closing of the transaction is subject to customary closing conditions, including Lucid obtaining the requisite shareholder approval at a special meeting of Lucid shareholders, and the deal is expected to close this September.
FSD Pharma is a life sciences holding company building a portfolio of diversified therapeutic assets and innovative healthcare and biotech services.
Contact the writer at giles@proactiveinvestors.com