cannabis

Posts, updates and videos about cannabis – updated automatically.

World Class Extractions Acquisition Target, Quadron Cannatech Introduces the “BIG BEAST” – the Latest Member of the BEAST Family of Extraction Systems to Process Over 5,000,000 kg of Cannabis or Hemp Per Year

World Class Extractions Inc. (“World Class”) (CSE: PUMP) (FRA:WCF) is pleased to announce that its acquisition target Quadron Cannatech Corporation (the “Company” or “Quadron”) (CSE: QCC), will begin to take reservations to toll process hemp or cannabis with the “BIG BEAST”, a fully automated, touch screen control continuous flow Ethanol Extractor System. The “BIG BEAST is the latest addition to the BEAST family of extractors, with estimated processing capacity of up to 20,000 kg of biomass per day – over 5,000,000 kg of biomass annually.

The BIG BEAST will be in production later this year following extensive innovative engineering which anticipates extracting and processing industrial scale biomass for the hemp and cannabis industry.

Some Key BIG BEAST Advantages:

  • Compliant with GPP (Good Production Practices) and GMP (Good Manufacturing Practice)
  • Advanced proprietary biomass cooling with ERS (Energy Recovery Exchange)
  • Continuous flow extraction with inline solvent recovery and surge storage
  • Equipped with proprietary “Crossflow” ethanol maximizer to operate within daily NFPA (National Fire Protection Association) ethanol limits
  • Advanced filtration stacks

The BEAST family of extractors compliments Quadron’s portfolio of the “BOSS” line of extraction systems – the next generation co-solvent cannabis and hemp extraction systems that were built to simplify extraction with the benefits of automation and data analytics; as well as the Company’s Mobile Extraction Module – a state-of-the-art self-contained and fully portable extraction and processing laboratory.  The Company is also preparing several additional machines with novel inhouse technology for the cannabis and hemp industry, including:  a biomass dehydration system, a preparation and grinding unit, as well as an advanced filtration system.

Rosy Mondin, CEO of Quadron commented, “We are excited about the development of the BIG BEAST, the first of its kind in North America.  The BIG BEAST is a high efficiency ethanol extraction system which represents the end result of extensive research and development.  The BIG BEAST should have the capability of providing farmers and licensed participants the ability to process extraordinary amounts of biomass per day.”

“We are excited by Quadron’s latest technological advancement towards developing a high efficiency, low cost extraction solution for the hemp and cannabis markets,” said Michael McCombie, CEO of World Class Extractions. “This latest development allows WCE  to focus on large scale extraction and supply of CBD derived from hemp in the United States.”

The Company will deploy the BIG BEAST later this year in selected US states and Canada.  Interested parties are encouraged to contact the Company directly for more information.

About World Class Extractions

World Class is a Canadian based developer of an innovative, large scale extraction process for both the hemp and cannabis industry. The Company intends to provide single step continuous flow extraction services to the hemp and cannabis industry. Using patent pending technology, World Class’ results produce higher yields and better quality full spectrum crude hemp oil at faster rates. The technology allows the extraction of CBD Oil and other related extracts from wet or dried natural plants. World Class can save its clients floor space, utility drying costs, equipment and processing labour costs.

For more information, visit: www.wcextractions.com.

On behalf of the Board of Directors of
WORLD CLASS EXTRACTIONS INC.

Michael McCombie
Chief Executive Officer
mike@wcextractions.com

Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements: Certain disclosures in this release constitute forward-looking statements. In making the forward-looking statements in this release, the parties have applied certain factors and assumptions that are based on the parties’ current beliefs as well as assumptions made by and information currently available to the parties. Although the parties consider these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. The parties do not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. 

Posted in featured_news | Tagged , , , , , , , | Leave a comment

FSD Pharma Welcomes All-Star Lineup of Cannabis Researchers to Scientific Advisory Board

FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) (FRA: 0K9) (“FSD” or the “Company”), is pleased to announce that three eminent cannabis researchers have joined the company’s Scientific Advisory Board (“SAB”).

“We are honored to welcome Daniele Piomelli, Ph.D., Ryan Vandrey, Ph.D. and David Casarett, MD, MA to our Scientific Advisory Board,” said Dr. Raza Bokhari, FSD Executive Co-Chairman & Chief Executive Officer. “This trio of world-renowned experts will play a key role in our company’s scientific and clinical development programs. Their guidance will be invaluable in shaping the biopharmaceutical strategic direction of the company.”

The new members include:

Daniel Piomelli, Ph.D.

Dr. Piomelli is the Louise Turner Arnold Chair in Neurosciences and Distinguished Professor of Anatomy and Neurobiology, Pharmacology and Biological Chemistry at the University of California, Irvine, where he is also the Director of the Center for the Study of Cannabis. He has authored more than 400 peer-reviewed articles in high-impact journals, three full-length books and 34 patents and founded the Department of Drug Discovery and Development at the Italian Institute of Technology in Genoa, Italy, which he directed from 2007 to 2016. He is Editor-in-Chief of Cannabis and Cannabinoid Research, the only peer-reviewed journal entirely dedicated to the scientific, medical, and psychosocial exploration of clinical cannabis, cannabinoids, and the endocannabinoid system.

Ryan Vandrey, Ph.D.

Dr. Vandrey is an experimental psychologist and an Associate Professor at the Behavioral Pharmacology Research Unit at Johns Hopkins University. Dr. Vandrey’s research focuses primarily on the impact of route of administration, dose, and chemical composition of cannabis products on resultant drug effects and pharmacokinetics. In addition, Dr. Vandrey has been involved with a broad range of studies related to the risks and benefits of medicinal cannabis use, the effects of cannabis use on sleep, cannabis withdrawal and the treatment of Cannabis Use Disorder, cannabis product testing, and developing measures of cannabis use behavior.

David Casarett, MD, MA

Dr. Casarett is a professor of Medicine at Duke University and the Chief of Palliative Care for Duke Health where he directs the Duke Center for Palliative Care. He is the author of more than 140 articles in journals including The Journal of the American Medical Association and The New England Journal of Medicine. His writing has appeared in national publications including the New York Times, and Wired. Dr. Casarett is also the author of three non-fiction books, the most recent of which was Stoned: A Doctor’s Case for Medical Marijuana, published in 2015 by Penguin Random House. He is the principal of Cannabis Outcomes, a full-service research and consulting group focused on bringing methodologic expertise to medical cannabis research and care delivery. His work in the cannabis space has included founding roles in startups that focus on growing/dispensing (Curio Wellness; CleverLeaves), genetic testing (MelixGx), data tracking (Evio Labs), and research (Zelda; Clinicann).

The SAB will continue to guide FSD Pharma in emerging as a leader in the field of cannabinoid therapeutics. The Board is led by chairman Charles V. Pollack, Jr., M.A., M.D., FACEP, FAAEM, FAHA, FACC, FESC, FCPP, an international leader in emergency medicine and founder of The Lambert Center for the Study of Medicinal Cannabis and Hemp at Thomas Jefferson University. The Board will continue to bring on well-known medical professionals with extensive research, academic and industry experience.

About FSD Pharma
FSD Pharma 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. The Company has 25,000 square feet that is licensed at its Ontario facility and expansion is currently underway.

FSD facilities sit on 70 acres of land with 40 acres primed for development and an expansion capability of up to 3,896,000 square feet.

FSD’s wholly-owned subsidiary, FV Pharma, is a licensed producer under the Cannabis Act and Regulations, having received its cultivation license on October 13, 2017 and its Sale for Medical Purposes license on April 18, 2019. FV Pharma’s vision is to transform its current headquarters in a Kraft plant in Cobourg, Ontario into the largest hydroponic indoor grow facility in the world. FV Pharma intends to cover all aspects of this exciting new industry, including cultivation, legal, processing, manufacturing, extracts and research and development. For additional information on the company, please visit our website at www.fsdpharma.com.

Forward-Looking Information
Neither the Canadian Securities Exchange nor its regulation services provider accept responsibility for the adequacy or accuracy of this release.

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on FSD Pharma’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Actual results and developments may differ materially from those contemplated by these. The forward-looking information contained in this press release is made as of the date hereof, and FSD Pharma is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward looking-information. The foregoing statements expressly qualify any forward-looking information contained herein.

SOURCE FSD Pharma Inc.

For further information: Investor Relations: Email: IR@fsdpharma.com, Website: www.fsdpharma.com; Media Relations: Ned Berkowitz, Email: Ned.Berkowitz@russopartnersllc.com, Tel: (646) 942-5629; Zeeshan Saeed, President and Founder, FSD Pharma Inc., Email: zeeshan@fsdpharma.com, Telephone: (416) 854-8884

Posted in featured_news | Tagged , , , , , , , , | Leave a comment

World Class and Deveron Enter Drone and AI Data Services Agreement to Assist Hemp Farmers across North America

World Class Extractions Inc. (CSE: PUMP) (FRA: WCF) (the “Company” or “World Class”) is pleased to announce it has entered into a Service Agreement with Deveron UAS Corp. (CSE:DVR) (“Deveron”) whereby Deveron will provide drone data and soil sampling services to World Class and its affiliate farmers focused on hemp production in the United States and Canada, providing an opportunity to increase yields and reduce costs.

Deveron has worked with leading agricultural companies to bring data acquisition and analytics to broad acre farmland. The company is integrated with leading farm platforms, like Bayer Crop Science’s Climate FieldView and John Deere’s MyJohnDeere data management systems. The expansion into hemp data analytics is a natural extension to the current data insights it provides to leading farmers in North America that grow corn, soybean, wheat and canola.

Deveron is an industry leading agriculture technology company focused on data acquisition and analytics that drive increased yields and reduced costs. The two companies will be bringing best-in class data acquisition tools for hemp growers that include drone data and soil data. On top of data acquisition, the company will be working with World Class and its farmer partners to deliver digital records and analytics that will help with benchmarking the hemp production process, traceability and other best management practices.

“Farming hemp requires proper planning, preparation and execution and we want to make sure our partner farmers have access to the best technology to assist them. The high value of hemp crops today makes the data Deveron collects even more valuable than for traditional row crops and will help our farming partners make better informed decisions on the field,” said Michael McCombie, CEO of World Class. “Deveron has a large network of agronomists and drone pilots throughout Canada and the United States, leveraging their technology and personnel spanning such large service areas will provide great value to our farmers as we build our network of processing facilities.”

“We are extremely excited to be expanding our digital product solution to the customers of World Class,” said David MacMilllan, President and CEO of Deveron. “On the data acquisition side, we see considerable scale and opportunities in supporting higher margin crop. Additionally, given our leading data insights algorithms with large growers in Canada and the United States, we believe we are uniquely positioned to provide the most informative data insights available to farmers thinking about changing their production from traditional row crops to hemp.”

About World Class

World Class is a Canadian based developer of an innovative, large scale extraction process for both the hemp and cannabis industry. The Company intends to provide single step continuous flow extraction services to the hemp and cannabis industry. Using patent pending technology, World Class’ results produce higher yields and better quality full spectrum crude hemp oil at faster rates. The technology allows the extraction of CBD Oil and other related extracts from wet or dried natural plants. World Class can save its clients floor space, utility drying costs, equipment and processing labour costs.

For more information, visit: www.wcextractions.com.

On behalf of the Board of Directors of
WORLD CLASS EXTRACTIONS INC.

Michael McCombie
Chief Executive Officer
mike@wcextractions.com

Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements: Certain disclosures in this release constitute forward-looking statements. In making the forward-looking statements in this release, the parties have applied certain factors and assumptions that are based on the parties’ current beliefs as well as assumptions made by and information currently available to the parties. Although the parties consider these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. The parties do not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. 

Posted in featured_news | Tagged , , , , , , , , | Leave a comment

Keeping Up with FSD Pharma

As well as yesterday’s announcement of a collaboration with Solarvest BioEnergy Inc to research using its algal expression technology to develop pharmaceutical-grade cannabinoids, FSD Pharma (CSE.HUGE) is also involved with Aura Health Inc. (CSE:BUZZ). This collaboration will give FSD Pharma a window into the medical marijuana market in Germany and, eventually, the EU generally.

CFN Media provides a useful summary of FSD’s collaborations and investments in a news release and an article published today.

The article is excellent as it lays out how strategic investments in the Cannabis sector are paying off for FSD Pharma.

 

Posted in update | Tagged , , , | Leave a comment

FSD Pharma Announces Research Agreement with Solarvest to Develop Algae-based, Pharma-grade Cannabinoids

FSD Pharma Inc. (CSE: HUGE) (OTC: FSDDF) (FRA: 0K9) (“FSD Pharma” or “FSD”) and Solarvest BioEnergy Inc. (TSX-V: SVS) (“Solarvest”), a technology company that developed an algal-based flexible production platform capable of producing health products, announced today that they signed a definitive collaborative research and development agreement. Under the agreement, Solarvest will conduct research using its algal expression technology to develop pharmaceutical-grade cannabinoids. FSD Pharma and Solarvest have made investments into one another and FSD has the option to enter into an exclusive license arrangement over a subset of the project and receive royalty rights over all of the products that result from the project.

Research Agreement: CBD Research Project
Solarvest will carry out a research project using its algal expression system for the purpose of developing a proof of concept that algae can express pharmaceutical-grade cannabinoids. FSD and Solarvest have allocated an initial budget of $1,000,000 for the CBD research project, over a two-year period, and created a joint scientific review committee to assess progress of the project against budgets and timelines.

License and Royalties
Upon successful development of proof of concept, Solarvest and FSD Pharma intend to enter into a license agreement under which Solarvest will grant FSD Pharma an exclusive, worldwide license over any use of prescription drugs that can treat diseases affecting the central nervous system. In consideration for the license, FSD Pharma will be required to pay Solarvest a royalty equal to 5% of the net profits from the sale of such products as well as reimburse Solarvest for the cost of production.

In addition to the licensing arrangement, Solarvest will pay a royalty fee to FSD Pharma on the sale or licensing of any products that result from the project, other than the FSD licensed indications, equal to 5% of the net sales or net license fees. Once Solarvest has paid an aggregate of $3,000,000 in royalty fees, the royalty percentage will be reduced to 3%.

Mutual Investments
Pursuant to the agreement, the two companies have made the following investments into one another:

a)

FSD Pharma has issued 10,000,000 class B subordinate voting shares in the capital of
FSD Pharma shares to Solarvest at a price of $0.30 per FSD share;

b)

Solarvest has issued 3,000,000 units of Solarvest units to FSD Pharma at a price of
$0.20 per unit. Each unit is comprised of one common share in the capital of Solarvest 
and one warrant, with each Solarvest warrant exercisable into one additional Solarvest
share at an exercise price of $0.25 for a period of two years following the issuance; and

c)

Solarvest has issued a convertible debenture to FSD Pharma in the principal amount of
$2,400,000. The debenture has a term of five years, bears interest of 3 percent per
annum, and is convertible into shares at a conversion price of $1.00 per share, provided
that FSD Pharma will be required to convert the debenture should Solarvest shares
close at a price of at least $1.20 for a period of 20 consecutive trading days.

“We are delighted to have forged this collaboration with the Solarvest team and their leading-edge research using the SVS algal technology to produce pharma-grade bio-synthetic cannabinoids,” stated Zeeshan Saeed, Founder and President of FSD Pharma.

Anthony Durkacz, Founder & Executive Co-Chairman of the Board of FSD Pharma, added, “This latest announcement is in line with FSD’s Board of Director’s strategy to invest in ground breaking R&D to find ways to revolutionize cannabis production through biosynthesis.”

“At FSD Pharma, we continue to explore new areas of science and are committed to identifying novel cannabis cultivation methods for medical purposes,” said Dr. Raza Bokhari, Executive Co-Chairman & CEO. “We are extremely excited to collaborate with Solarvest, and work towards identifying alternative methods of cannabinoid production using algal technology – methods that could one day lead to breakthrough medicines. If successful, these alternative methods could dramatically disrupt current cannabis cultivation methods for medical purposes. That, and the potential to create significant value for our shareholders, is something we are very excited about.”

“Solarvest has developed a suite of international patents based on using algae as a production platform,” said Gerri Greenham, CEO Solarvest BioEnergy. “The algae will be grown in sterile pharmaceutically approved cGMP facilities facilitating an FDA licensing program. A full growth cycle of algae is around a hundred hours whereas the growth of cannabis plants is measured in months. This short time period condenses research and production times. With our protein expression technology we plan on expressing individual targeted cannabinoids so FSD can formulate these pure actives into their pharmaceutical program.”

About FSD Pharma

FSD Pharma 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. The Company has 25,000 square feet available for production at its Ontario facility.

FSD facilities sit on 70 acres of land with 40 acres primed for development and an expansion capability of up to 3,896,000 square feet.

FSD’s wholly-owned subsidiary, FV Pharma, is a licensed producer under the Cannabis Act and Regulations, having received its cultivation license on October 13, 2017 and its Sale for Medical Purposes license on April 18, 2019. FV Pharma’s vision is to transform its current headquarters in a Kraft plant in Cobourg, Ontario into the largest hydroponic indoor grow facility in the world. FV Pharma intends to cover all aspects of this exciting new industry, including cultivation, legal, processing, manufacturing, extracts and research and development.

About Solarvest

Solarvest is an algae technology company whose production platform provides it with an extremely flexible system capable of being adapted to produce numerous products. The company has successfully produced “Organic Omega 3 DHA” fruit gummies and food boosting powders.  The platform has also successfully demonstrated (news release dated March 16th, 2015) the expression of bone morphogenetic protein, a high value therapeutic protein. The Company has successfully produced recombinant viral antigens (immune stimulating proteins), Cecropins (antimicrobial peptides/protein) and has completed a feasibility study for the expression of CBD and THC as a way to produce cannabinoids in sterile GMP facilities. Solarvest anticipates that its Algal Expression Technology will be the most cost efficient method for the production of any cannabinoids, however, Solarvest has been notified by a third party that it has patented technology for the production of algae in bioreactors. The company intends to investigate this and other algal production technology that it is aware of that may be able to improve production economics.

Neither the Canadian Securities Exchange (the “CSE”) nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

Certain statements contained in this press release constitute forward-looking information.

These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the FSD Pharma’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the Parties’ plans to develop and carry out the CBD Research Project, Solarvest’s development of the Proof of Concept, the ability of the Parties to commercialize Project Cannabinoids, the execution of the Exclusive License Agreement, and the Parties’ intentions to make equity investments into one another. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk that the requisite regulatory and board of direct approvals are not obtained, the failure of Solarvest to develop the Proof of Concept, and the failure of the Parties to successfully commercial Project Cannabinoids. The forward-looking information contained in this press release is made as of the date hereof, and the neither FSD Pharma nor Solarvest is obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward looking-information. The foregoing statements expressly qualify any forward-looking information contained herein.

SOURCE FSD Pharma Inc.

For further information: FSD Pharma Inc.: Zeeshan Saeed, President and Founder, Telephone: (416) 854-8884, Email: zeeshan@fsdpharma.com; Solarvest BioEnergy Inc.: Gerri Greenham, Chief Executive Officer, Telephone: (416) 420-0947, Email: ggreenham@solarvest.ca

Posted in featured_news | Tagged , , , , , , , | Leave a comment

FSD Pharma Reports 2018 Year-End Results

FSD Pharma Inc. (CSE: HUGE) (OTC: FSDDF) (FRA: 0K9) (“FSD Pharma”, “FSD” or “the Company”) today reported its financial and operational results for the fourth quarter and fiscal year-ended December 31, 2018. These filings are available for review on the Company’s SEDAR profile at www.sedar.com.

“2018 was a year of major accomplishments for FSD Pharma,” said Executive Co-Chairman & Founder Anthony Durkacz, “in which we are pleased to report:

  • Strategic investments were valued at $18 million with a mark-to-market unrealized gain of $10 million;
  • Total net assets in excess of $52 million with no long-term liabilities; and
  • Cash position on December 31, 2018 of $22 million.”

“FSD has fully complied with all Required Filings with Canadian securities regulators. It’s unfortunate that we missed the filing deadline and I take full responsibility for the delay,” said Dr Raza Bokhari, Executive Co-chairman & CEO. “I’m grateful to all shareholders for their patience and forbearance. We are working with a new auditing firm that started its work in the beginning of April 2019 in advance of our listing on the New York Stock Exchange and other factors were simply beyond our control. It was important that they took the time they needed to finalize the audit. I want to personally assure all shareholders and regulators that we fully realize that such delays are unacceptable and we have strengthened all internal controls and governance processes to ensure that all future filings are completed on time.”

“Looking ahead, FSD Pharma continues to make progress in its efforts to being a global leader in cannabinoid pharmaceutical based treatments and will continue to invest heavily in milestone based research & development to unlock the promise the cannabinoid molecule offers in alleviating the pain and suffering of countless around the world. In addition, after receiving the sales license for medicinal cannabis in April 2019, we are tightly focused on developing a robust expansion plan at our Cobourg, Ontario facility under the leadership of Dr. Sara May. Finalizing the next phase of expansion, with drawings, a construction budget and timeline is our top priority,” concluded Dr. Bokhari.

Financial Highlights

At this point in the Company’s development, management continues to expend required capital on the development of its business, the continued renovation and build out of its Cobourg facility, salaries and wages for employees and ongoing operating expenses relating to the management of a public reporting issuer.

Without a sales license in place in 2018, the Company generated revenue during the year from a sublease in its facility in the amount of $86,656 (2017 – $25,943). The Company purchased its facility in November 2017 and continues to expand and build out the facility.

For the year ended December 31, 2018, total expenses increased to $32,863,937 (2017 – $3,550,458), primarily due to increases in costs of being a public company, in legal fees and fees being paid to support its build out and transition to becoming a licensed producer. Included in those expenses was a charge of $7,991,791 for listing fees, $6,440,406 for share based compensation and an allowance for loss of $7,499,977 due to a former vendor.

Net loss for the year ended December 31, 2018 was $32,775,174 (2017 – $3,524,515). After accounting for its other investments, the Company recorded an unrealized gain of $10,064,550 for the year ended December 31, 2018 (2017 – nil) which led to a net comprehensive loss of $22,710,624 (2017 – $3,524,515).

Liquidity and Capital Resources

During the year ended December 31, 2018, the Company used net cash of $18,489,903 in operating activities (2017 – $149,865). This is due to substantially increased activity on the build out of the Cobourg facility, increasing public awareness and preparing to and applying for the numerous licenses the Company requires to produce and sell cannabis.

During the year ended December 31, 2018, the Company generated net cash of $44,876,169 from its financing activities.

The Company had a net increase in cash of $16,394,944 during the year ended December 31, 2018 (2017 – $4,709,907).

The Company has a working capital balance of $20,826,211 in 2018 compared to a working capital balance of $4,121,660 as at the fiscal year ended December 31, 2017.

About FSD Pharma

FSD Pharma 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. The Company has 25,000 square feet available for production at its Ontario facility.

FSD facilities sit on 70 acres of land with 40 acres primed for development and an expansion capability of up to 3,896,000 square feet.

FSD’s wholly-owned subsidiary, FV Pharma, is a licensed producer under the Cannabis Act and Regulations, having received its cultivation license on October 13, 2017 and its Sale for Medical Purposes license on April 18, 2019. FV Pharma’s vision is to transform its current headquarters in a Kraft plant in Cobourg, Ontario into the largest hydroponic indoor grow facility in the world. FV Pharma intends to cover all aspects of this exciting new industry, including cultivation, legal, processing, manufacturing, extracts and research and development.

Forward-Looking Information

Neither the Canadian Securities Exchange nor its regulation services provider accept responsibility for the adequacy or accuracy of this release.

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Corporation’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the development of the Corporation’s indoor cannabis facility and its business goals and objectives. The forward-looking information contained in this press release is made as of the date hereof, and the Corporation is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward looking-information. The foregoing statements expressly qualify any forward-looking information contained herein.

SOURCE FSD Pharma Inc.

For further information: Zeeshan Saeed, President and Founder, FSD Pharma Inc., Email: zeeshan@fsdpharma.com, Telephone: (416) 854-8884; Investor Relations: Email: IR@fsdpharma.com, Website: www.fsdpharma.com; Media Relations: Ned Berkowitz, Email: Ned.Berkowitz@russopartnersllc.com, Tel: (646) 942-5629

Posted in featured_news | Tagged , , , , , | Leave a comment

World Class Congratulates Quadron on Scaling Up Hemp and Cannabis Extraction Capacity by Up to 800,000 lbs Per System Per Year

World Class Extractions Inc. (CSE: PUMP) (“World Class” or the “Company”) would like to congratulate Quadron Cannatech Corporation (“Quadron”) on its introduction of the Big BOSS, the latest model of Quadron’s automated, next generation hemp and cannabis extraction system. According to Quadron’s press release dated May 1, 2019, the Big BOSS provides the same advantages as the distinguished BOSS, but with significantly larger processing capabilities. The Big Boss is capable of processing up to 3,000 lb biomass per day, which translates to 66,000 lbs biomass processing per month (based on operating the Big BOSS 5 days per week), and nearly 800,000 lbs biomass processing per year.

World Class and Quadron have signed an arrangement agreement which, subject to satisfaction of all required conditions, would result in the merger of the two entities (the “Arrangement”). “The introduction of the Big BOSS reflects Quadron’s ongoing commitment to leveraging its technical expertise and creating value for shareholders. World Class is extremely excited to complete its previously-announced merger with Quadron, a like-minded company, and work together to become a global leader in in the emerging, and rapidly growing, cannabis oils market,” said Michael McCombie, Chief Executive Officer of World Class.

World Class is also pleased to announce that it has granted 5,000,000 stock options (the “Options”) each to two officers of Quadron who will become officers of World Class post-Arrangement. The Options are subject to a vesting schedule, with 1,250,000 Options vesting on the date the Company and Quadron complete the Arrangement, and the balance of the Options vesting in increments of 1,250,000 Options every 6 months thereafter. The Options will be exercisable post-Arrangement for a period of three years at an exercise price of $0.21 per Option. However, if the Arrangement is not completed by July 1, 2019, then the Options will expire. The Options and underlying common shares are subject to a four-month hold period in accordance with the policies of the Canadian Securities Exchange.

About World Class Extractions Inc.

The Company is a Canadian based developer of an innovative extraction process for both the hemp and cannabis industry. The Company intends to provide single step continuous flow extraction services to the hemp and cannabis industry. Using patent pending technology, the Company’s results produce higher yields and better-quality crude hemp oil at faster rates. The technology allows the extraction of CBD Oil and other related extracts from wet or dried natural plants. The Company can save its clients floor space, utility drying costs, equipment and processing labour costs.

For further information please contact:

Michael McCombie
Chief Executive Officer
Email: mike@wcextractions.com

Forward-Looking Statements

Certain statements included in this press release constitute forward-looking information or statements (collectively, “forward-looking statements”), including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend”, “may”, “should” and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. This press release contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors.

Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

Posted in featured_news | Tagged , , , , , , , , | Leave a comment

FSD Pharma Announces Share Exchange Transaction with Aura Health

FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) (FRA: 0K9) announced today that it has entered into a share exchange transaction with Aura Health Inc. (“Aura”). Pursuant to the agreement, FSD acquired 13,562,386 Aura shares valued at $3 million issued from treasury in exchange for 13,181,019 FSD shares issued from treasury valued at $3 million. Aura Health is a Toronto-based cannabis company building an international network of vertically integrated businesses in the medical cannabis industry.

FSD and Aura shares will be placed in escrow and released to the companies upon the Escrow Agent receiving a certificate executed by FSD and Aura that: (i) the Offering Escrow Release Conditions have been satisfied; (ii) the acquisition has closed; (iii) each of FSD and Aura are satisfied with their due diligence review of the other party; (iv) the Supply Agreement has been executed by FSD and Pharmadrug; and (v) the Consulting Agreement has been executed by FSD and Aura.

As part of the transaction, Aura and FSD will enter into a consulting agreement. Aura will assist FSD with obtaining euGMP certification at the company’s existing licensed facility through Pharmadrug Production GmbH, a company for which Aura Health is in the process of acquiring an 80% equity interest.

Aura has a pre-existing supply agreement with another producer that it is required to honor in priority. It is anticipated that FSD will become a preferred Canadian cannabis supplier to Pharmadrug for the German market. Pharmadrug will enter into a supply agreement with FSD and upon proper euGMP certification will commit to purchase 1,000 kilograms (or such greater or lesser amount as may be agreed from time to time by the parties) of Canadian produced cannabis product from FSD at a price of $7.00 per gram FOB Germany (subject to downward adjustment should market exigencies dictate), provided that the product is saleable in the German market.

The Supply Agreement is not a “take or pay” arrangement. For greater certainty, the Supply Agreement will not limit or restrict the ability of Pharmadrug to freely source product from other suppliers in any other country, provided that the Purchase Commitment is satisfied.

Zeeshan Saeed, Founder and President of FSD commented, “This agreement with Aura Health establishes a distribution channel for FSD in Germany and the Eurozone and allows the company to expand its footprint internationally. As production at our Cobourg facility grows and following receipt of our euGMP certification, we will be able to supply our high-quality cannabis products to the medical markets in Europe.”

“This is an exciting opportunity for FSD Pharma to capitalize in the global medicinal cannabis space. The global market is expected to grow and remain undersupplied for some time. In collaboration with Aura Health, we see an opportunity to increase shareholder value by establishing channel partners in Germany and the Eurozone” stated Dr. Raza Bokhari, Executive Co-Chairman & CEO.

About FSD Pharma

FSD Pharma 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. The Company has 25,000 square feet available for production at its Ontario facility.

FSD facilities sit on 70 acres of land with 40 acres primed for development and an expansion capability of up to 3,896,000 square feet.

FSD’s wholly-owned subsidiary, FV Pharma, is a licensed producer under the Cannabis Act and Regulations, having received its cultivation license on October 13, 2017. FV Pharma’s vision is to transform its current headquarters in a Kraft plant in Cobourg, Ontario into the largest hydroponic indoor grow facility in the world. FV Pharma intends to cover all aspects of this exciting new industry, including cultivation, legal, processing, manufacturing, extracts and research and development. For additional information on the company, please visit our website at www.fsdpharma.com.

About Aura Health Inc.

Aura Health is building an international network of vertically integrated cannabis assets. Through an established product line of cannabis-infused edible products and oil extracts, Aura is dedicated to building a high margin downstream business in the medical marijuana sector. The Company holds convertible debt that converts to 54% equity of HolyCanna, a cultivation and nursery license holder in Israel and is focused on acquiring strategic assets across the cannabis value chain, initially in Israel and Germany.

Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on FSD Pharma’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Actual results and developments may differ materially from those contemplated by these. The forward-looking information contained in this press release is made as of the date hereof, and FSD Pharma is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward looking-information. The foregoing statements expressly qualify any forward-looking information contained herein.

SOURCE FSD Pharma Inc.

For further information: Zeeshan Saeed, President, Founder and Director, FSD Pharma Inc., Email: zeeshan@fsdpharma.com, Telephone: (416) 854-8884; Investor Relations: Email: ir@fsdpharma.com, Website: www.fsdpharma.com; Media Relations: Nic Johnson, Email: nic.johnson@russopartnersllc.com, Tel.: (212) 845-4242

Posted in featured_news | Tagged , , , , , , , , , , , | Leave a comment

FSD Pharma to Acquire Prismic Pharmaceuticals

FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) (FRA: 0K9) (“FSD Pharma” or the “Company”) and Prismic Pharmaceuticals Inc. (“Prismic”), a US-based specialty R&D pharmaceutical company, announced today that they have entered into a securities exchange agreement dated April 22, 2019 (the “Agreement”) pursuant to which FSD Pharma has agreed to acquire all of the outstanding securities of Prismic (the “Transaction”). Prismic is developing novel non-addictive prescription drugs with unique safety profiles with the goal of addressing the opioid crisis based on formulations utilizing micro-palmitoylethanolamide’s (“PEA”) “entourage” effect on certain drugs impacting the endocannabinoid system.

Pursuant to the terms of the Agreement, FSD Pharma will acquire all outstanding common and preferred shares of Prismic for an aggregate purchase price of US$17.5 million (CAD$23.4 million based on an exchange rate of US$1 to CAD$1.3349), to be satisfied by the issuance of an aggregate of 102.7 million Class B subordinate voting shares in the capital of FSD Pharma (each, an “FSD Share”) at a deemed price of CAD$0.2275 (US$0.1704) per FSD Share representing the volume weighted average price of the FSD Shares on the Canadian Securities Exchange (the “CSE”) for the ten trading days prior to the execution of the Agreement. In addition, FSD Pharma has agreed to assume up to US$4.0 million of outstanding Prismic liabilities on terms to be mutually agreed by the two companies, some of which may, potentially, be settled by the issuance of additional FSD Shares. Additionally, all of the outstanding Prismic stock options and warrants will become exercisable into FSD Shares, with the number and exercise price of such securities to be adjusted in accordance with the Transaction’s exchange ratio.

The FSD Shares to be issued to the Prismic shareholders will be deposited into escrow at the closing of the Transaction, and be subject to an 18-month staggered time escrow release.

“This transaction symbolizes FSD Pharma’s vision of acquiring a platform company to advance research and development of FDA-approved applications of synthetic cannabinoids and other synergistic molecules,” said FSD Pharma Executive Co-Chairman & CEO, Dr. Raza Bokhari. “Led by Peter Moriarty, one of the founders of Shire Pharmaceuticals, Prismic’s management team has built a solid foundation for a specialty pharmaceutical company, and we look forward to providing them with milestone-based support in order to advance proprietary drug candidates through the various development stages. This is a very exciting day for FSD Pharma that we believe represents a paradigm shift in the development and outlook of our company.”

Peter Moriarty, Co-Founder and Chairman of the Board of Directors of Prismic, commented, “We are excited to be entering into a new phase of growth with FSD Pharma. We believe our combined resources and highly competent leadership teams will position us to execute on our clinical development programs and on delivering highly effective products that safely address pain, inflammation and neurological disorders with high unmet clinical needs.”

Prismic has exclusive worldwide licensing rights (except for Italy and Spain) to a patent-protected form of palmitoylethanolamide (micro-PEA with particle sizes of 0.6 – 10 microns), on which Prismic’s development platform is based and from which Prismic’s lead prescription drug candidate, PP-101, has been formulated. Such formulations take advantage of micro-PEA “synergistic” or “entourage” effect on certain drugs impacting the endocannabinoid system. This means that lower doses of those drugs may be administered together with micro-PEA to achieve the desired therapeutic effect. This includes the potential combination or concomitant use of micro-PEA formulations with drugs such as THC, CBD, certain anticonvulsants, and opioids where studies have indicated opioid-sparing and tolerance delaying properties of micro-PEA may impact the development of dependence in patients. Prismic’s first prescription drug candidate, PP-101, a 600 mg tablet of micro-PEA, is anticipated to commence a Phase 2/3 accelerated clinical development program in early 2020 as a concomitant medication to be administered with pregabalin (Pfizer’s Lyrica®) for the treatment of fibromyalgia.

Completion of the Transaction is subject to various closing conditions, including: the approval of the CSE, the approval of the boards of directors of FSD Pharma and Prismic, the approval of the security holders of Prismic, and completion of due diligence by the parties.

About FSD Pharma

FSD Pharma 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. The Company has 25,000 square feet available for production at its Ontario facility.

FSD Pharma’s facilities sit on 70 acres of land with 40 acres primed for development and an expansion capability of up to 3,896,000 square feet.

FSD Pharma’s wholly-owned subsidiary, FV Pharma, is a licensed producer under the Cannabis Act and Regulations, having received its cultivation license on October 13, 2017. FV Pharma’s vision is to transform its current headquarters in a Kraft plant in Cobourg, Ontario into the largest hydroponic indoor grow facility in the world. FV Pharma intends to cover all aspects of this exciting new industry, including cultivation, legal, processing, manufacturing, extracts and research and development.

About Prismic Pharmaceuticals

Prismic is a US-based specialty pharmaceutical company dedicated to addressing the opioid crisis by developing novel non-addictive prescription drugs for the treatment of pain, inflammation, and neurological disorders, based on formulations utilizing the company’s micro-PEA development platform (palmitoylethanolamide with particle sizes of 0.6 – 10 microns). Such formulations take advantage of micro-PEA’s “synergistic” or “entourage” effect on certain drugs impacting the endocannabinoid system. This means that lower doses of those drugs may be administered together with micro-PEA to achieve the desired therapeutic effect. This includes the potential combination or concomitant use of micro-PEA formulations with drugs such as THC, CBD, certain anticonvulsants, and opioids where studies have indicated opioid-sparing and tolerance delaying properties of micro-PEA may impact the development of dependence in patients. Prismic’s first prescription drug candidate, PP-101, a 600 mg tablet of micro-PEA, is anticipated to commence a Phase 2/3 accelerated clinical development program in early 2020 as a concomitant medication to be administered with pregabalin (Pfizer’s Lyrica®) for the treatment of fibromyalgia.

Prismic was founded by three healthcare industry veterans, Zachary Dutton, Danilo Casadei Massari, and Peter Moriarty who was also one of the founders of Shire Pharmaceuticals.

Forward-Looking Information

This news release contains certain “forward-looking statements” or “forward-looking information” (collectively “forward looking statements”) within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Forward-looking statements can frequently be identified by words such as “plans”, “continues”, “expects”, “projects”, “intends”, “believes”, “anticipates”, “estimates”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. Forward-looking statements in this news release include, but are not limited to, statements: that the Transaction will represent a paradigm shift for the Company; that Prismic’s drugs under development will have the capability of addressing the opioid crisis; that the combined resources and leadership teams of FSD Pharma and Prismic will be positioned to execute on clinical development programs and on delivering highly effective products that safely address pain, inflammation and neurological disorders with high unmet clinical needs; that lower doses of certain drugs may be administered together with micro-PEAs to achieve a desired therapeutic effect; regarding the expected timing of Prismic’s Phase 2/3 accelerated clinical development program for Prismic’s PP-101 drug candidate; and regarding the Transaction terms and the expected benefits to the Company and its shareholders as a result of the proposed acquisition of Prismic. Such statements are only projections, are based on assumptions known to management at this time, and are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements, including: that Prismic’s proposed drug formulations may not achieve FDA or other necessary regulatory approvals; that Prismic’s micro-PEA formulations may not work as expected or at all; that the Transaction may not be approved by the CSE or the shareholders of Prismic; that the Transaction may not be completed on the terms expected or at all; that legislative changes may have an adverse effect on the business and product development of products of the Company and Prismic; that the Company may not be able to obtain adequate financing to pursue its business plan; general business, economic, competitive, political and social uncertainties; and other factors beyond the Company’s control. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are cautioned not to place undue reliance on the forward-looking statements in this release, which are qualified in their entirety by these cautionary statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements in this release, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities laws. Statements in this release with respect to Prismic and its products have been provided by Prismic and, as at the date hereof, have not been independently verified by the Company.

SOURCE FSD Pharma Inc.

For further information: Zeeshan Saeed, President, Founder and Director, FSD Pharma Inc., Email: zeeshan@fsdpharma.com, Telephone: (416) 854-8884; Investor Relations: Email: ir@fsdpharma.com, Website: www.fsdpharma.com; Media Relations: Nic Johnson, Email: nic.johnson@russopartnersllc.com, Tel: (212) 845-4242

Posted in featured_news | Tagged , , , , , , , | Leave a comment

World-Class Extractions: Adding Real Value to Cannabis

Anthony Durkacz has a unique perspective on Canada’s emerging cannabis industry. Through his First Republic Capital, he has financed FSD Pharma (C.HUGE), Canntab Therapeutics (C.PILL), Cannara Biotech (C.LOVE) and, now, World-Class Extractions (C.PUMP). In each case Durkacz has been looking for business models which go well beyond the simple cultivation of cannabis.

“A lot of people were counting on the end of prohibition to lead to a boom,” said Durkacz. “However, for the licenced product, the recreational market missed expectations. It really didn’t set a precedent for success. In fact, one brokerage is reporting that recreational sales actually shrank between January and February.”

Those following the cannabis story are not surprised. The federal government, through Health Canada, has been very slow on the licencing front and this has led to shortages of licenced cannabis. The fact that edibles – which make up nearly 50% of the cannabis market in the US – are not even legal as yet in Canada has also hurt the regulated market. Plus, the price and quality of what is being referred to as “government pot” are not meeting customer expectations. Add to that the federal government’s prohibition of any sort of “branding” and the reluctance of police forces to shut down grey and black market pot operations and it is no wonder that the Canadian recreational cannabis sector is off to a slow start.

“All of this has led to an industry rethink,” said Durkacz. “Now you have to focus on margin. The price of cannabis will go down so you need to really pay attention to generating the highest revenue and focus on costs.”

In all of Durkacz’s cannabis ventures, there is an emphasis on adding top line value and scale.

“You’ll have boutique growers. The equivalent of fine wine,” said Durkacz. “But what about box wine?”

Getting the product mix right and, most importantly, being able to scale has driven companies like FSD Pharma. “Our theory is that you have to go big and you have to have consistent above average quality.”

It is a theory which has also driven World-Class Extractions.

“In the black market, the extraction business was tiny,” said Durkacz. “In the legal business, it is going to be huge. With hemp for example, now that it’s legal in the USA, you will need the capacity to process 1,000 to 10,000 kilograms per day, not per year.”

To make edibles, pharma and vap oil products you need to extract the active ingredients from cannabis reliably, consistently and at scale. Which is important as those products, when they are legal, are likely to make up a huge fraction of the cannabis market and, perhaps more critically, the most valuable segment of that market. While people are price sensitive in the smokable flower end of the market, they are much less concerned with price when it comes to edibles, pharma or vape juice. Which means that, if you can control the costs of the input cannabis and the costs of the extraction process, you are able to increase the margins for these cannabis products.

“With World-Class Extractions, we wanted to have large scale, ideally mobile, extraction technology more or less immediately,” said Durkacz.

Which explains World-Class Extraction’s merger with Quadron Cannatech (C.QCC) announced April 16.

“Quadron already has excellent extraction technology with excellent operators,” said Durkacz. “They have a CO2 driven, turn key machine they call “The Boss” which is fully operational and has been sold to cannabis producers. And they are working on “The Beast” which is a much larger extraction system in line with the focus on scale of World-Class.”

“Quadron has a lot of operating experience in the extraction business,” said Durkacz. “Experience in large scale extraction is something which is difficult to find in the cannabis industry generally and it is very valuable. At the same time, Quadron had limited marketing and finance experience which is where World-Class comes in. It is a perfect marriage.”

Quadron also has a key asset in its CEO, Rosy Mondin. “Rosy has a very good reputation in the cannabis industry,” said Durkacz. “Very good at operations and structuring agreements and very much the sort of CEO I look for.”

Under the terms of the merger, Ms. Mondin will become CEO of the combined companies which will trade under the name World-Class Extractions. In the press release announcing the merger, Ms. Mondin states, “There is no doubt that the extraction and processing of cannabis oils will become an incredibly important facet of the overall cannabis industry. By bringing together Quadron and World Class, two complementary businesses, we are creating a stronger enterprise to achieve long-term growth and value creation for our shareholders. Strengthing production and operations as key competitive factors and enhancing our prospects to innovate and lead, we are tightly aligned in our goal of becoming a global leader in the emerging, and rapidly growing, cannabis oils market.”

“Acquiring Quadron catapults World-Class Extraction’s growth plans and pushes us way up the learning curve,” said Durkacz.

In fact, by bringing in Quadron’s technology, experience and executive team, Durkacz has positioned PUMP as the premier Canadian cannabis extraction company just in time to ramp up for the expected October 2019 legalization of edibles in Canada.

 

Posted in article | Tagged , , , | Leave a comment