FSD Pharma Announces Agreement To Grant Exclusive Rights To Recreational Alcohol Misuse Technology

• Biopharma company FSD Pharma (NASDAQ: HUGE) has inked a Letter of Intent (LOI) with private business 1319741 B.C. Ltd., to be renamed Celly Nutrition Inc. (Celly Nu,) to set up the terms and conditions following which the latter will be granted exclusive rights to recreational applications for FSD Pharma’s alcohol misuse technology designed to accelerate alcohol detoxification.

• The new business will have Coca-Cola (NYSE: KO) veteran John Duffy as CEO and former Celsius CEO Gerry David and marketing maven Kevin Harrington as Advisory Board members.

See also: Psychedelics For Alcohol Use Disorder: Awakn Opens European Clinic, FSD Launches R&D Program

Upcoming definitive licensing and loan agreements between both businesses will give Cell Nu exclusive rights on FSD’s IP including commercialization, manufacturing, production, packaging, marketing and sales of products within the recreational realm. 

Celly Nu will pay FSD Pharma a license fee in the form of 100 million common shares, which the latter will be entitled to distribute (partially or entirely) to its shareholders, as well as a 7% royalty on gross revenue of future sales.

Additionally, following the transaction’s closing FSD intends to loan Celly Nu up to $755,600 (CA$1 million) on a secured basis with a 3-year term with an annual 10% interest rate.

Meanwhile, FSD will retain all IP rights to medical and pharmaceutical-related applications, a franchise that it intends to continue developing.

See also: FSD Pharma To Spin Out New Publicly Trading Subsidiary As Distribution To Shareholders

As stated by the company’s president Zeeshan Saeed, “We chose to differentiate pipelines compartmentalizing the pharmaceutical products from recreational products, to enable it to be brought to market faster,” further adding that shareholders will now get “an extremely rare opportunity to participate in a company that not only has a strong and diverse pharmaceutical pipeline but also a venerable marketing gurus Kevin Harrington and Gerry David are paired for the first time to provide oversight and direction for a first-in-class product.”

Cell Nu’s newly-formed team will include CG expert John Duffy as CEO; marketing icon Kevin Harrington and former Celsius Holdings CEO Gerry David as advisory board members. David as chairman, was joined on the directors’ board by Lucid Psycheceuticals’ co-founder Dr. Lakshmi Kotra, and FSD’s president Zeeshan Saeed.

Photo: Benzinga edit with photo by Olia Danilevich on Pexels.