FSD Pharma Inc (CSE:HUGE, NASDAQ:HUGE) said its board of directors has approved a share repurchase program that will allow the company to buy back up to 1.9 million of its subordinate Class B voting shares over the next 12 months.
“FSD Pharma is focused on the advancement of its drug candidates toward the clinic, and we recognize there may be a strategic opportunity to enhance shareholder value without compromising our ambitious growth plans,” the company's interim CEO Anthony Durkacz said in a statement.
“We believe that our stock is significantly undervalued,” he added. “This will allow us to continue investing in our future, while, at the same time, also investing in the exceptional value that our own shares represent.”
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The 1.9 million shares figure represents about 5% of FSD’s issued and outstanding subordinate voting shares, the company said.
The buybacks can begin on January 18, 2023, and will end January 17, 2024, or once the company reached the maximum share threshold.
FSD noted that the company is not obligated to purchase any shares and that the program can be terminated at its discretion.
The company previously repurchased nearly 2 million subordinate voting shares for cancellation at an average price of about C$1.20 over a 12-month period expiring December 30, 2022.
FSD Pharma is a Toronto-based biotechnology company with three drug candidates in different stages of development.
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