FSD Pharma plans to spin out subsidiary

Apr. 12, 2023 9:03 AM ETFSD Pharma Inc. (HUGE)By: Dulan Lokuwithana, SA News Editor

Canadian biotech FSD Pharma (NASDAQ:HUGE) announced Wednesday that it intends to spin out a yet-to-be-formed wholly-owned subsidiary to focus on the development of its core assets and maximize shareholder value.
Following the transaction, expected to complete in July 2023, the subsidiary will separate as an independent public company. In relation to the spin-out, FSD Pharma (HUGE) is looking for a business to execute a reverse take-over transaction.
All shareholders of FSD Pharma (HUGE) will be entitled to receive common shares in the new company's capital on a pro-rata basis. After the transaction, the parent company will continue to trade on NASDAQ and Canadian Securities Exchange.
HUGE shareholders will be able to vote on the spin-out transaction at the company's annual general and special shareholders meeting scheduled for June 29, 2023.
In February, FSD Pharma (HUGE) regained compliance with the Nasdaq listing rule regarding the minimum bid price requirement after months of non-compliance.