FSD Pharma To Spin Out New Publicly Trading Subsidiary As Distribution To Shareholders

Psychedelics biotech company FSD Pharma Inc. HUGE intends to complete a spin-out transaction via an arrangement plan under the Ontario Business Corporations Act whereby shares of a new and upcoming wholly-owned subsidiary will be separated into an independent public company. 

All FSD shareholders would then exchange their company shares (including both Class A and B) for the same number of existing shares of the company (of identical terms) plus common shares of the new company on a pro-rata basis. The new company will only have one class of shares.

With the exact distribution date to be updated soon, the transaction is expected to be completed in July and would enable FSD Pharma to focus on developing its core assets while maximizing shareholder value.

Following the spin-out, the parent company will remain listed on NASDAQ and the CSE while the new subsidiary will become a reporting issuer in the same jurisdictions in Canada as FSD Pharma, toward completing a reverse takeover transaction with a yet unidentified business.

FSD Pharma will hold an annual shareholders meeting on June 29, where shareholders will be able to vote on the spin-out transaction, and will share further details on the new arrangement.

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