FSD Pharma Completes Acquisition of Prismic Pharmaceuticals to Advance Targeted Micro-PEA Therapeutics for the Endocannabinoid System

July 2, VCBeat (WeChat ID:(VCBeat) Learned from foreign media that FSD Pharma Inc. and the U.S.-based specialty pharmaceutical company Prismic Pharmaceuticals, Inc. jointlyAnnounced,On June 28, 2019, FSD Pharma completed the acquisition of all issued and outstanding securities of Prismic. Pursuant to the terms of the previously announced securities purchase agreement, FSD PharmaPurchaseAll issued ordinary shares and preferred shares of Prismic, with a total purchase price of approximately $17.5 million.Furthermore,FSD Pharma Inc. has agreed to assume approximately $3.05 million in debt of Prismic Pharmaceuticals. All outstanding stock options and warrants of Prismic Pharmaceuticals have been converted into options and warrants to purchase shares of FSD Pharma, with the number of such securities and their exercise prices adjusted based on the exchange ratio under the agreement.

At the completion of the transaction,The shares issued by FSD to former Prismic shareholders have been deposited into an escrow account and are subject to a 18-month vesting schedule.After the completion of the transaction,FSD announced that it will advance the research and development of targeted applications for micronized palmitoylethanolamide, which modulates the human endocannabinoid system.

FSD Pharma will continue to be led by Dr. Raza Bokhari, Executive Co-Chairman and Chief Executive Officer. Zachary Dutton, co-founder of Prismic Pharmaceuticals, will continue to serve as CEO of Prismic Pharmaceuticals, reporting to the President of FSD’s Biosciences Division. Peter Moriarty, co-founder and former Chairman of Prismic Pharmaceuticals, has been appointed Chairman of the newly formed FSD BioPharma Industry Advisory Board.

Executive Co-Chairman and Chief Executive OfficerDr. Raza Bokhari stated：“On behalf ofTo the shareholders and Board of Directors of FSD Pharma, we are delighted to welcome the shareholders and stakeholders of Prismic Pharmaceuticals into the FSD Pharma family. Over the past few weeks, Dr. Brennan has worked closely with our M&A team and Prismic’s leadership to complete this transaction ahead of schedule and within budget. I must commend Dr. Brennan for his meticulous attention to detailAttention, I would also like to express my special thanks“Zach Dutton and Peter Moriarty worked hard to resolve some outstanding issues to close the deal.”

Dr. Bokhari continued, “The acquisition of Prismic represents FSD Pharma’s vision and mission, marking a paradigm shift in the company’s overall outlook. We rely heavily on the expertise of Dr. Brennan, a veteran of the pharmaceutical industry. He hasWorking at GlaxoSmithKline and Johnson & Johnson can help us complete"The FDA approves various stages of the drug development process. It can help us synthesize cannabinoid prescription drugs for commercial use."

FSD Pharma Inc. focuses on the research and development of cannabinoid-based therapies for various central nervous system disorders, including chronic pain and fibromyalgia, and is committed to developing high-quality indoor-grown cannabis., pharmaceutical-grade cannabis. The company is approved to in approximately25,000Cannabis is grown on land measured in square feet.FSD’s wholly-owned subsidiary, FV Pharma, is a licensed producer under the Cannabis Act and the Cannabis Regulations. It obtained its cultivation license on October 13, 2017, and its full sales license for medical purposes on June 21, 2019. FV Pharma aims to cover all aspects of the cannabis industry, including cultivation, processing, manufacturing, extraction, and research and development.

Prismic Pharmaceuticals, Inc. is a U.S.-headquartered specialty pharmaceutical company dedicated to addressing the opioid crisis by developing novel, non-addictive prescription medications for the treatment of pain, inflammation, and neurological disorders.Its formula is based on the company'smicro-PEA Development Platform (palmitoylethanolamide with a particle size of 0.6–10 microns). Prismic’s first candidate prescription drug is PP-101, a 600 mg PEA tablet, which is expected to initiate an accelerated Phase 2/3 clinical development program in 2020 as an adjunctive therapy to pregabalin (Pfizer’s Lyrica®) for the treatment of fibromyalgia.。Prismic was co-founded by three healthcare industry veterans, Zachary Dutton, Danilo Casadei Massari, and Peter Moriartyfounded, they are alsoOne of the founders of Shire Pharmaceuticals.

(Compiled by Zhang Jing)