FSD Pharma announces a share buyback program

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TORONTO – (COMMERCIAL THREAD) – FSD Pharma Inc. (NASDAQ: HUGE) (CSE: HUGE) (FRA: 0K9A) (“FSD Pharma” or the “Company”), a life sciences holding company dedicated to building a portfolio of biotechnology assets and solutions, today announced that its Board of Directors has authorized the Company to buy back up to 2,000,000 of its Class B subordinate voting shares (the “Shares”). subordinate voting rights ”) from time to time over the next 12 months at prevailing market prices to enable the Company to use its excess cash reserves to strategically return value to shareholders.

“FSD Pharma is focused on advancing its drug candidates to the clinic; however, with over US $ 39.3 million in cash and cash equivalents on our balance sheet as at September 30, 2021, we recognize that there may be a strategic opportunity to enhance shareholder value without compromising our ambitious growth plans, ”commented Anthony Durkacz, Interim CEO of FSD Pharma. “We believe our stock is significantly undervalued. This will allow us to continue to invest in our future, while investing in the exceptional value that our own stocks represent.

The Company will purchase up to 2,000,000 Subordinate Voting Shares, representing approximately 5% of the issued and outstanding Subordinate Voting Shares as of the date hereof. The share buyback program will begin on January 4, 2022 and end on December 30, 2022, unless terminated early by the Company. The share buyback program does not require the Company to purchase any subordinate voting shares. If management decides that it has a better use of its cash reserves, it is not required to continue to purchase subordinate voting shares and share purchases may be suspended or terminated at any time upon termination. discretion of the Company.

The actual number of Subordinate Voting Shares purchased, the timing of the purchases and the purchase price will depend on market conditions. The Company will purchase Subordinate Voting Shares through the Canadian Securities Exchange (“CSE”) at the market price in effect on the CSE at the time of purchase, subject to restrictions imposed by laws on the purchase. applicable securities. All subordinate voting shares purchased by the Company will be canceled.

About FSD Pharma

FSD Pharma Inc. is a biotechnology company with three drug candidates in different stages of development. FSD BioSciences, Inc. (“FSD BioSciences”), a wholly owned subsidiary, is focused on the pharmaceutical research and development of its flagship compound, ultra-micronized palmitoyl ethylamine (“PEA”) or FSD-PEA (formerly known as FSD-201). Lucid Psycheceuticals Inc. (“Lucid”), a wholly owned subsidiary, focuses on the research and development of its flagship compounds, Lucid-PSYCH (formerly Lucid-201) and Lucid-MS (formerly Lucid-21-3002) . Lucid PSYCH is a molecular compound identified for the potential treatment of mental health disorders. Lucid-MS is a molecular compound identified for the potential treatment of neurodegenerative disorders.

Forward-looking information

Certain statements contained in this document are “forward-looking statements”. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “plans”, “plans”, “estimates”, “intentions”, “plans” , “Hopes”, “planned” or “believes”, or variations of these words and expressions, or declares that certain actions, events or results “could”, “could”, “could”, “could”, “potentially” or “could” be caught, occur or be affected. Forward-looking statements contained in this press release include comments made with respect to the Company’s normal course issuer bid, advancing the Company’s research and efforts to increase shareholder value. FSD cannot guarantee that these forward-looking statements will prove to be correct. The reader is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Because forward-looking statements relate to future events and conditions, by their very nature they require the making of assumptions and involve inherent risks and uncertainties. The Company cautions that while the assumptions are believed to be reasonable under the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set forth in the forward-looking statements. Factors that could cause such significant differences include, but are not limited to: the fact that the drug development efforts of Lucid and FSD BioSciences are at a very early stage; the fact that preclinical drug development is uncertain and that product candidates from Lucid and FSD BioSciences may never go to clinical trials; that the results of preclinical studies and early stage clinical trials may not be predictive of the results of later stage clinical trials; the uncertain outcome, cost and timing of product development activities, preclinical studies and clinical trials of Lucid and FSD BioSciences; the uncertain clinical development process, including the risk that clinical trials may not be designed effectively or yield positive results; the potential inability to obtain or maintain regulatory approval of the drug candidates from Lucid and FSD BioSciences; the introduction of competing drugs that are safer, more effective, or less expensive than, or otherwise superior to, the drug candidates from Lucid and FSD BioSciences; the initiation, conduct and completion of preclinical studies and clinical trials may be delayed, affected or affected by issues related to COVID-19; the potential inability to secure adequate funding; the potential inability to obtain or maintain intellectual property protection for Lucid and FSD BioSciences’ drug candidates; and other risks. Further information regarding factors that could cause actual results to differ materially is included in the Company’s annual and other reports filed from time to time with the Canadian Securities Administrators on SEDAR (www.sedar.com) and with the United States Securities and Exchange Commission on EDGAR (www.sec.gov) under the heading “Risk Factors”. Any forward-looking statement contained in this press release speaks only as of its date. The Company does not undertake to update any forward-looking statements, except to the extent required by applicable securities laws.

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