Finance

FSD Pharma joins cannabis companies on Nasdaq

It's no secret that cannabis is considered one of the hottest investment trends on Wall Street. Although selling processed cannabis isn't exactly what you might call innovative, the black market for global cannabis sales generates tens of billions of dollars each year. Some investors prefer stocks that are listed on the Nasdaq to other exchanges due to their increased liquidity.

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.

Hemp.im is a mobile application that is exclusively dedicated to hemp news as well as the very latest news about the general hemp and cannabis industry. The App covers topics like the latest changes in cannabis legalization, health benefits of hemp, and more.

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).

FSD Pharma is using cannabis to treat nervous system disorders and autoimmune diseases. (Source)

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.

(Featured image by NickyPe via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Hemp.im, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in finanzen, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Angelique Moss

Angelique Moss is a London-based entrepreneur, writer, and traveller. The world of business, finance, and technology, is her preferred cup of tea. She also writes about the developments and discussions on health, art, luxury and media. A top writer for several Medium publications, she has published hundreds of widely read articles on investing, stocks, global markets, cannabis, and technology for multiple platforms. She is also interested in culture, history, and social affairs.