FV Pharma Debuts on the Canadian Securities Exchange Today

FV Pharma Inc. debuts on the Canadian Securities Exchange alongside Medmen today. The wholly-owned subsidiary of FSD Pharma Inc. has received all of the necessary exchange and regulatory approvals and will trade under the symbol “HUGE”. The company will be seeking a similar investor response.

FV Pharma’s main calling card at the moment in an large 620,000 square foot facility and exceptional land package totaling 70 acres. The licensed producer is currently growing medical cannabis in an initial 20,000 square foot limited footprint. The company intends on expanding the footprint 10-fold later this year, with the mission to transform the facility into the largest hydroponic indoor cannabis facility in the world.

The company has notable and deep entanglements with Cannabis Wheaton Income Corp. As a streaming partner, CBW will receive a 49.9% stream of all cannabis (or cannabis-derived products including any immature cannabis plants and any cannabis trim) produced at the Facility, under partnership with Cannabis Wheaton, in perpetuity. CBW’s CEO, Chuck Rifici, sits on the Board of Directors. In return, FV Pharma gets ongoing financial, design, expertise and operational support.

In terms of share structure, two tranches were issued, raising $33.5 million is proceeds. Under the first tranche of the Financing, 127,598,403 Subscription Receipts were sold at a price of $0.09 per Subscription
Receipts for aggregate gross proceeds of approximately $11.48 million. In the second tranche, 243,561,510 Subscription Receipts were sold at a price of $0.09 per unit, for aggregate gross proceeds of approximately $21.92 million.

All told, the public float will consist of a least 377 million shares—excluding extraneous warrants. The capital raise comes in handy as FV Pharma has no operating revenue and its level of expenditures is dependent on the sale of equity capital to finance its operations.

It should be a noteworthy day on the CSE tomorrow, as it’s rare to have two new cannabis issues IPO on a single day. Midas Letter will update the progress of both FV Pharma and Medmen as further events warrant.

Original article: FV Pharma Debuts on the Canadian Securities Exchange Today

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