FSD Pharma joins cannabis companies on Nasdaq

Another company has now received approval to place its shares among cannabis companies on Nasdaq. The company is FSD Pharma, a Canadian pharmaceutical and biotechnology company engaged in research and development.

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Treating disorders with cannabis

FSD Pharma is working to treat central nervous system disorders and various autoimmune diseases using synthetic compounds. This year, they acquired Prismic Pharmaceuticals, which also works with drugs that affect the human body’s endocannabinoid system.

Their subsidiary FV Pharma, which is an approved producer under the Canadian Cannabis Act, is growing cannabis on approximately 25,000 square feet in Ontario. The subsidiary received the license for cultivation as early as 2017, and in summer 2019 the license for sale for medical purposes was added.

According to FSD Pharma, since its acquisition this year, the company has also been working to help overcome the opioid crisis by developing substitutes with palmitoylethanolamide (PEA).

FSD Pharma gets approval to join cannabis companies on Nasdaq

With the approval of the listing of the Class B Subordinated Voting Shares on Nasdaq, the FSD Pharma made the leap from the Canadian Securities Exchange to one of the cannabis companies on Nasdaq.

The stock benefited significantly on the CSE when the stock temporarily rose by almost 38% from the closing price on Dec. 13 of $4.42 (CA$5.80) to $6.10 (CA$8). It last closed at $5.80 (CA$7.60).

In its press release, the company stated that it expects trading in the shares to begin on the Nasdaq in the near future.

Cannabis companies on Nasdaq report successful financing

In the recent past, the company has successfully completed a financing round. A price of $15.34 (CA$20.10) per share was achieved, which is more than double the current share price.

This private placement raised $3.50 million (CA$4.59 million) for the company. In the company’s press release on the third-quarter results, CEO Reza Bokhari is quoted as saying that the management, founders and board members alone contributed $1.90 million (CA$2.5 million) to the financing round.

In late November, Bokhari described it as helpful for their placement as one of the cannabis companies on Nasdaq. This financing has really improved the visibility of the company among institutional investors.

Now it remains to be seen how the cannabis market will develop, whether the question of legalization, especially in the U.S., can finally be clarified. This development should be decisive for the whole industry and therefore also for FSD Pharma and other cannabis companies on Nasdaq.

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(Featured image by NickyPe via Pixabay)

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