FSD Pharma Announces Strategic Investment in Huge Shops
20 Diciembre 2018 - 8:36AM
InvestorsHub NewsWire
FSD Pharma Announces Strategic Investment
in Huge Shops
Huge Shops forms alliance
with Coffee Time’s parent company Chairman’s Brands to establish
retail distribution network
Toronto, ON -- December 20, 2018 --
InvestorsHub NewsWire -- FSD Pharma Inc. (“FSD
Pharma” or “FSD”) (CSE: HUGE) (OTCQB: FSDDF) (FRA: 0K9) has
completed a strategic investment of $1.3 million or just under 9.9%
in Huge Shops, a Toronto-based cannabis retailer. Huge Shops has a
strategic alliance with Chairman’s Brands, parent company of Coffee
Time, a well-established operator of retail coffee shops with more
than 75 locations in Canada and other locations
worldwide.
As part of the investment, Huge
Shops has the option to acquire a minimum of ten retail locations
under Chairman’s umbrella of properties, and, subject to
availability and further negotiation, purchase additional Coffee
Time sites. Huge Shops has identified ten initial key locations
across Ontario, which meet the company’s strategic objective to
become a premiere recreational cannabis supplier. Under the
province’s current model for recreational cannabis, Huge Shops will
file expressions of interest with the Alcohol and Gaming Commission
of Ontario (AGCO) in the five designated regions across Ontario in
order to obtain one of the province’s first retail locations while
strengthening its foothold in Canada’s largest market. Huge
Shops stores will be branded and operated independently of Coffee
Time shops, but the agreement provides access to the Coffee Time’s
highly experienced retail management team and large commercial real
estate portfolio.
FSD Pharma Executive Co-Chairman and
Co-Founder, Anthony Durkacz, says, "Huge Shops’ strategic alliance
with Chairman’s Brands enables the company the ability to quickly
create a network, with a well-established consumer base, in key
demographic areas throughout the province. FSD Pharma, through its
investment in Huge Shops, will offer leading cannabis products to
consumers in the province.”
As the province rolls out its
private retail model, Huge Shops is planning rapid expansion in key
markets throughout Ontario to meet its target of operating 75
locations pursuant to the company receiving its retail operator
license.
Huge Shops President and Director,
Michael Potts, says, “FSD’s investment and our partnership
Chairman’s Brands will help us achieve our goal of
rapidly reaching Ontario’s 14 million consumers (1), an estimated
CAD $2.3 billion opportunity (2). The strategic alliance gives us
an advantage by allowing us to avoid cumbersome leasing
arrangements, a problem facing many competitors in our
industry.”
Steve Michalopoulos, Vice President
of Brand Development at Chairman’s Brands stated, "The legalization
of cannabis in Canada presents tremendous opportunity for companies
across a number of industries that have a retail footprint.
We’ve been observing closely what’s been happening in the
Cannabis space and what other brands have been doing within the
coffee space. Aligning our coffee brand with Huge Shops
presents opportunity to carefully evaluate our real estate network
and potentially maximize the real estate to the benefit of all
stakeholders. We were very careful to strategically align ourselves
with a group that has the wherewithal and capability of building a
sustainable long term business”.
The first retail shop is expected to
open by April 1, 2019, pending receipt of a retail operator’s
license.
1: https://www.cbc.ca/news/canada/toronto/marijuana-ontario-price-market-sales-1.4298311
2: https://www150.statcan.gc.ca/n1/daily-quotidien/180418/cg-b001-eng.htm
About FSD
Pharma
FSD Pharma is focused on the
development of the highest quality indoor grown, pharmaceutical
grade cannabis and on the research and development of novel
cannabinoid-based treatments for several central nervous system
disorders, including chronic pain, fibromyalgia and irritable bowel
syndrome. The Company’s phase one growth plan involves the
development of 25,000 square feet of indoor grow space at its
Ontario facility and an additional 220,000 square feet, which
pending approval by Health Canada, is expected to be operational in
the first quarter 2019.
FSD facilities sit on 72 acres of land with 40
acres primed for development and an expansion capability of up to
3,896,000 square feet.
FSD’s wholly-owned subsidiary, FV
Pharma, is a licensed producer of cannabis having received its
cultivation license under the Access to Cannabis for Medical
Purposes Regulations (ACMPR) on October 13, 2017 and is now
operating under the recently enacted Cannabis Act. FV Pharma vision
is to transform its current headquarters in a Kraft plant in
Cobourg, Ontario into the largest hydroponic indoor grow facility
in the world. FV Pharma intends to cover all aspects of this
exciting, new industry, including cultivation, legal, processing,
manufacturing, extracts and research and development.
About Chairman’s
Brands
Headquartered in Toronto, ON, the
privately held Chairman’s Brand Corporation is one of the largest
and fastest growing franchising companies in Canada, with a global
presence in Europe and the Middle East. The Chairman’s Brands
family includes 241 Pizza®, Coffee Time Donuts®, Robin’s Donuts®,
Eggsmart®, New Orleans Pizza®, The Friendly Greek® and Mia Fresco®.
For more information visit www.chairmansbrands.com
Forward-Looking
Information
Certain statements contained in this
press release constitute forward-looking information. These
statements relate to future events or future performance. The use
of any of the words “could”, “intend”, “expect”, “believe”, “will”,
“projected”, “estimated” and similar expressions and statements
relating to matters that are not historical facts are intended to
identify forward-looking information and are based on the
Corporation’s current belief or assumptions as to the outcome and
timing of such future events. Actual future results may differ
materially. This release contains forward-looking information
relating to the development of the Corporation’s indoor cannabis
facility and its business goals and objectives. The forward-looking
information contained in this press release is made as of the date
hereof, and the Corporation is not obligated to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward looking-information. The foregoing statements
expressly qualify any forward-looking information contained
herein.
Neither the Canadian Securities
Exchange nor its regulation services provider accept responsibility
for the adequacy or accuracy of this release.
Contact
Information:
Zeeshan Saeed, President, Founder
and Director, FSD Pharma Inc.
Email:zeeshan@fsdpharma.com
Telephone: (416) 854-8884
Investor
Relations
Email: IR@fsdpharma.com
Website: www.fsdpharma.com
Media
Relations
Ned Berkowitz
Email: Ned.Berkowitz@russopartnersllc.com
Tel: (646) 942-5629
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