Canadian firm FSD Pharma (NASDAQ: HUGE) (CSE: HUGE.CN) is suspending all cannabis-related activities.
The company has begun liquidating its assets, including its 25,000 square-foot production facility in Cobourg, Ontario.
According to Mjbiz Daily, a regulatory filing made in May by FV Pharma valuated its facility with operational equipment included in CA$12.3 million.
“It is now clear to us that our shareholder value is best served in closing down our medicinal grade cannabis operation in Cobourg, Ontario and reinforcing steps to advance pharmaceutical R&D efforts on our lead compound FSD201 (ultra-micronized PEA) and continuing to explore the acquisition of other compelling compounds to expand our drug development pipeline,” co-chair and CEO Raza Bokhari stated.
FSD’s pharmaceutical R&D team, led by Dr. Edward Brennan, is actively working to submit an Investigational New Drug Application (IND) to the FDA for the use of FSD201 (ultra-micronized PEA) to treat hospitalized COVID-19 patients, Bokhari added.
“We are hopeful to initiate the phase 2 clinical trial before the end of this year and remain cautiously optimistic that our study may improve treatment outcome for COVID-19 patients,” he said.
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