TORONTO--(BUSINESS WIRE)--PRESS RELEASE--FSD Pharma Inc. has announced the sale of 5.0 million common shares of Pharmadrug Inc. (CSE:BUZZ) (formerly Aura Health) in a privately negotiated transaction at C$0.08 per share for cash proceeds of C$400,000. Under the terms of the sale, the buyer has the option through June 26, 2020 to purchase an additional 5.0 million shares of Pharmadrug at C$0.10 per share from FSD Pharma for cash proceeds of C$500,000. Additional transaction details can be found on the SEDI website at www.sedi.ca/sedi/.
FSD Pharma’s equity position of 13.5 million Pharmadrug shares was established in April 2019 as part of a share exchange transaction. The company may consider the divestiture of the balance of its equity stake in Pharmadrug through open market transactions.
"We are pleased to finalize this transaction as part of our continuing efforts to strengthen disposable cash on our balance sheet primarily to support our pharmaceutical R&D program. We plan to continue to shore up our cash position by strategically divesting non-cash assets, and raising new capital, either through private placement, debt financing or registered offering of our Class B subordinate voting stock,” stated Raza Bokhari, MD, Executive Co-Chairman and CEO.
