As announced in April, FSD Pharma is selling their Cobourg building and Bloomberg reports that that part of the business (cannabis cultivation) has been scaled down to a bare minimum. Instead, the company will “double down on our biosciences and specialty R&D pharmaceutical efforts”. In line with this, on June 3 they announced that they had received U.S. Food and Drug Administration approval to design a proof-of-concept study for a potential Covid-19 treatment. But this drug does not involve any sort of cannabis-derived compound which implies that growing marijuana plants is no longer where they see their future. It looks like Cobourg’s hope that they would provide large employment opportunities has gone. Perhaps a new owner of the building will provide employment but that will be some years away. Photo below is from April 2019.
Despite the announcement that the company is looking at drugs to help Covid-19, the drug they are testing is not cannabis derived. Bloomberg reports:
Instead, FSD is testing a naturally occurring fatty acid called ultramicronized PEA, which has been shown to help with inflammation. FSD acquired the worldwide rights excluding Italy and Spain to ultramicronized PEA from Epitech Group about a year ago for $17.5 million, according to Chief Executive Officer Raza Bokhari.
Bokhari is in fact skeptical that cannabis-derived compounds such as CBD can help treat Covid-19.
Meanwhile, the Certo building will continue to deteriorate and one wonders if that will ever get restored. The Kraft/FSD Pharma building would suit a food manufacturer but there’s no signs of anyone keen to expand in that field in North America let alone Cobourg. Other Cannabis growing companies are reducing their size and not expanding so a rescue by one of them seems unlikely.
See the full Bloomberg report in the link below.
Their building is still listed for sale and it’s likely it will take many months to sell.
- Is Cannabis Factory Leaving Cobourg? – 20 April 2020
- Bloomberg report
- Work to start on restoring Certo Building – 24 February 2020
- Real Estate Listing
- Update on Cobourg’s Marijuana Facility – initial plans – 22 December 2017
Update – 30 July 2020
FSD Pharma today announced that they will be closing down their Cobourg facility, ceasing cultivation of Marijuana and surrendering their Health Cannabis license to cultivate cannabis. Instead they will focus on developing a drug to treat Covid-19. A press release today said they will: “suspend all activities by FV Pharma within 30 days of the notification date (today). FSD Pharma has begun the process of liquidating all FV Pharma assets, including the sale of the Company’s cannabis production facility in Cobourg, Ontario.”
So the Certo building will not get renovated by FSD Pharma but will no doubt be part of the property now being sold. See “Real Estate Listing” in links above for details of what they are selling.