TORONTO, Feb. 19, 2019 (GLOBE NEWSWIRE) — Canntab Therapeutics Limited (CSE: PILL, OTCQB: CTABF, FSE: TBF1) (“Canntab” or the “Company”) is pleased to provide an update on a number of significant developments, including that it has commenced converting a portion of its facility situated within the Health Canada approved facilities owned by FSD Pharma Inc. (“FSD Pharma”), which recently received its Standard Processing License, its previously announced financial advisory agreement with Mackie Research Capital Corporation (“Mackie Research”) has been extended, one of its directors, Vitor Fonseca, has advised the Company of his intention to transfer a portion of his equity through the exercise of options in the Company strictly for estate planning purposes to members of his family, and it it has begun trading on the OTCQB Venture Market.
Moving into FSD Pharma
The Company is pleased to announce that it has begun to convert its interim facilities (the “Canntab Facility”), formerly known as Grow Room #6, located within the Health Canada-approved facility owned and operated by FSD Pharma, which recently, through its wholly-owned subsidiary FV Pharma Inc. (“FV Pharma”), was issued a Standard Processing License from Health Canada (the “FSD Processing License”).
The FSD Processing License is a significant step towards FSD Pharma applying for a pre-sale inspection by Health Canada of its facilities. If FSD Pharma passes the pre-sale inspection, then it would likely receive its sales license from Health Canada shortly thereafter. Under the terms and conditions of Canntab’s collaboration and profit sharing agreement with FSD Pharma (the “Collaboration Agreement”), Canntab would then commence manufacturing its extensive suite of products under the supervision of FSD Pharma personnel, which likely paves the way for Canntab to commence generating revenue in the second quarter of 2019.
In addition, the Canntab Facility, combined with the FSD Processing License, will immediately allow the Company to manufacture its extensive suite of products for testing by Health Canada. Most importantly, this will include Canntab’s bi-layered hard pill consisting of both instant and extended release properties to be used in clinical trials being conducted by Dr. Garbuz, subject to approval by the University of British Columbia Research Ethics Board.
“Canntab moving into our Health Canada approved portion of our Cobourg facility is an important strategic achievement for FSD Pharma. I’m confident that Canntab’s oral delivery system will contribute immensely in superior solutions for patients and result in improved treatment outcomes,” stated Dr. Raza Bokhari, Executive Co-Chairman & Interim Chief Executive Officer of FSD Pharma.
Mackie Research Extension
Mackie Research will continue to act as financial advisor to the Company until April 30, 2019, providing a number of services, including, but not limited to, capital markets advisory, financial and operational analysis, and recommendations on strategic growth objectives.
As part of the compensation for its services during the Extension Period, the Company (i) will pay a monthly, non-refundable work fee of $14,000 to Mackie Research; and (ii) will grant 100,000 broker warrants (the “Mackie Warrants”) to Mackie Research. The Mackie Warrants will vest if, within six months of the date of their issuance, the Company’s common shares (“Common Shares”) have a daily volume weighted average trading price of more than $1.25 for 20 consecutive trading days. Each Mackie Warrant will entitle the holder thereof to purchase one common share in the capital of the Company (“Common Share”) at an exercise price of $1.02 for a period of 36 months.
Director Estate Planning Initiative
Vitor Fonseca, a Director of the Company, has informed the board of directors of the Company of his intention to exercise up to 300,000 stock options of the Company, and then to subsequently transfer up to half of the underlying Common Shares to immediate family members for the purpose of estate planning.
“These proposed transfers are strictly for the benefit of my estate planning objectives. My family has no intention to sell these shares at this time or in the near future. My family and I are here for the long-term. We could not be more satisfied with Canntab’s progress to date, and its prospects for the future,” said Mr. Fonseca.
Trading on the OTCQB Venture Market
The Company’s common shares (“Common Shares”) have begun trading on the OTCQB Venture Market under the symbol “CTABF”. This allows residents of the United States to purchase the Company’s stock more readily and can be used for contributions towards their 401(k) retirement savings plans, among other investment vehicles.
In addition, on April 20th, 2019, corresponding with its third year end, Canntab will begin trading on the OTCQX® Best Market. Companies found on OTCQX are said to be distinguished by the integrity of their operations and diligence with which they convey their qualifications. Canntab plans on exceeding these expectations by meeting high financial standards and following best practice corporate governance while demonstrating compliance with U.S. securities laws and being current and transparent with our disclosures.
“Ultimately, this is another move along our strategic process with the goal of becoming the global leader of research in, production of and education about hard pill oral dosage therapeutic cannabis,” said Jeff Renwick, Chief Executive Officer and a Director of Canntab.