The company that bought the old Kraft building had big plans at first. They wanted to be the biggest grower of Marijuana plants in Canada and they floated their shares under the ticker HUGE. But in July 2020, they announced that they would be giving up on that idea and selling their Cobourg facility with an asking price of $19M. They moved out and are now based in Toronto. Work is now focused on developing medications and when the Covid-19 pandemic struck, they aimed at using Cannabis compounds for its treatment. Their latest announcement is that they have a licence agreement with an Italian company to “develop U.S. Food and Drug Administration (“FDA”) approved veterinary drugs for the treatment of gastro-intestinal diseases in Canine and Feline (Dogs and Cats).” Meanwhile they have lost millions (over $30M in 2020) and raised more money by selling more shares.
Their most recent statement of intent (26 January 2021) says that they will continue to research products to treat Covid-19 although “the Company may not be in a position to complete the Study prior to the end of 2021.” And “In addition, the Company is actively seeking appropriate potential buyers and is hopeful to finalize the sale of its non-core real estate asset in Cobourg, Ontario. The Company and its counterparty agreed to terminate the previously announced conditional sales contract for this real estate asset.” They also announced that their president (Mr. Zeeshan Saeed) had been fired for cause (details not provided).
The original broker for the property found a buyer who proceeded to do “due diligence”. The name of the potential buyer was never announced. However, that sale was not completed and the property is now back on the market with a different broker (Cushman Wakefield). The asking price is a large part of the company’s balance sheet (it was $42M at the end of 2020) so its sale at a good price is important to them.
Meanwhile, the Cobourg’s Heritage community and the Town were concerned about the fate of the Certo building at the rear of the property. In 2018 FSD Pharma said that they planned to use it as an on-site Cannabis dispensary. It was in danger of collapse and FSD Pharma promised to fix it. In December 2020, Historic Carpentry and Historic Brick company were working on the roof and masonry.
They obviously now have no plans to “dispense Cannabis” so restoration must be being done to meet obligations and to make the property more “sellable”.
- Current listing of Cobourg property
- FSD Pharma Corporate Update – 26 January 2021
- Balance Sheet per Yahoo Finance
- Northumberland News re Certo building restoration – 8 December 2020
Previous Posts on Cobourg news Blog
- Work to start on restoring Certo Building – 24 Feb 2020 – includes photos showing state of building.
- FSD Pharma scales down Cannabis Cultivation – 8 June 2020
- Is Cannabis Factory leaving Town? – 20 April 2020
- Cannabis Facility Update – 7 February 2019
- FSD Pharma announces Restoration of Cert Building – 10 October 2018