FSD Pharma Inc (CSE:HUGE) (OTCMKTS:FSDDF) announced Monday that its wholly-owned subsidiary FV Pharma Inc had received its sales license to supply and sell cannabis products, a key milestone for the licensed producer.
The license, granted by Health Canada, went into effect on April 18, 2019.
The terms allow the current FSD facility to supply and sell cannabis products, while an amended sales license, expected in the near future, will include the sale of dried and fresh cannabis flower.
The Toronto-based company plans to ramp up production at its current facility while continuing to build out the plant to add additional grow capacity, its founder and president Zeeshan Saeed said in a statement.
The sales license also allows FSD’s partner Canntab Therapeutics (CSE:PILL) to begin sales of its cannabis oral dose delivery platforms, including CBD and THC capsules, in Canada and internationally.
“We expect that this will provide an immediate benefit to both parties, since FSD is entitled to a share of Canntab's revenue from sales as a result of the collaboration and profit sharing agreement that we entered into this past fall,” said Saeed.
FSD Pharma grows medical-grade cannabis at its 25,000 square foot facility in Ontario, with an additional 220,000 expected to be added by the end of 2019.
Shares of FSD Pharma were trading at C$0.23 in Canada and US$0.17 in the US at Friday’s close.
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