TORONTO, Feb. 7, 2019 /CNW/ – FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) (FRA: 0K9) (“FSD” or the “Company), a licensed producer under the Cannabis Act, announced today that it has completed a strategic investment of $1.5 million in Pharmastrip Corp. and signed a definitive collaboration and profit sharing agreement with the company, effective January 23, 2019. Under the terms of the agreement, FSD will install Pharmastrip proprietary equipment at its facility in Cobourg, Ontario. FSD will use the equipment to manufacture organic medical cannabis infused in oral thin film strips. Pharmastrip will grant FSD an exclusive, perpetual license to manufacture and sell the oral thin film strips in Canada.
FSD will seek all approvals and licenses required under the Access to Cannabis for Medical Purposes Regulations and manufacture the product in compliance with all applicable laws and regulations. FSD will submit an application to Health Canada in order to obtain the license to produce and sell the products. FSD will be responsible for all costs, expenses and fees payable to complete and submit the application. Profits from the sale of the products will be shared equally by both parties.
Zeeshan Saeed, Founder and President of FSD, commented, “FSD made this strategic investment because of the potential we see in alternative delivery methods for cannabis, such as Pharmastrip’s oral thin strips. We expect the demand for alternative delivery methods for both THC and CBD to increase as the market continues to develop. We are excited to install Pharmastrip’s proprietary equipment under this collaboration agreement at our Cobourg plant and look forward to beginning production once the necessary license has been granted.”