FSD Pharma Inc. (NASDAQ:HUGE), a leading biopharmaceutical company, has unveiled a series of significant corporate changes aimed at enhancing its market position. The company will undergo a share consolidation and change its name to "Quantum BioPharma Ltd." as part of a broader strategy to align with its evolving business focus and comply with Nasdaq's listing requirements.
What happened: The share consolidation, set to take effect on August 15, 2024, will reduce the number of issued and outstanding shares, consolidating every sixty-five (65) pre-consolidation shares into one (1) post-consolidation share. This move is designed to increase the share price and help the company meet the minimum bid price required by Nasdaq for continued listing.
Alongside the consolidation, FSD Pharma will officially rebrand as Quantum BioPharma Ltd., with its Class B Subordinate Voting Shares to commence trading under the new ticker symbol "QNTM" on both the Canadian Securities Exchange (CSE) and NASDAQ.
Private Placement To Strengthen Voting Rights
As part of this transition, the company will also undertake a non-brokered private placement, offering up to 4 post-consolidation Class A Multiple Voting Shares at $18.00 per share. This offering is expected to be fully subscribed by entities controlled by current Class A shareholders Zeeshan Saeed and Anthony Durkacz. The move is intended to restore the voting rights attached to the Class A shares to nearly the same level as when the company went public in 2018.
These changes mark a pivotal moment in FSD Pharma's journey, as it positions itself for future growth under its new identity, Quantum BioPharma Ltd., while continuing to focus on developing innovative biotech solutions for neurodegenerative and metabolic disorders.
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