Ontario Court Upholds Canadian Biopharmaceutical Win Over Former CEO In C$2.8M Dispute

The Ontario Superior Court of Justice upheld a May arbitration decision in favor of FSD Pharma Inc. HUGE against its former CEO Dr. Raza Bokhari.

Allegations of Mismanagement

The court's judgment highlighted allegations of financial mismanagement by Bokhari, including an attempt to transfer $12 million from FSD Pharma's Canadian bank account to an American account under his control.

Bokhari's challenge to the arbitrator's decision was rejected by the court, which found his explanations unconvincing, wrote Adam Jackson for the Green Report Market.

Financial Repercussions

• Following the ruling, FSD Pharma is set to recover the C$2.8 million awarded in May, with an additional 6% interest rate.
• Bokhari also owes USD $175,000 for legal expenses, and his USD$150,000 security deposit has been forfeited.

In a separate development, FSD Pharma signed a strategic agreement with Celly Nutrition Corp., aiming to distribute a portion of its holdings in Celly Nu to shareholders.

Celly Nu specializes in beverages designed to accelerate alcohol metabolism and reduce breath alcohol levels, focusing on the dietary supplement market.

Finally, FSD Pharma assured investors that its proportional ownership in the company will remain unchanged, with adjustments to other investment types. 

See Also: FSD Pharma Announces Agreement To Grant Exclusive Rights To Recreational Alcohol Misuse Technology

Price Action

HUGE shares were trading down at 1.54% at $1.211 per share Thursday afternoon.

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