FSD Pharma Announces Receipt of Court Action and Update on Spin-Out and Distribution

FSD Pharma Inc. (NASDAQ: HUGE / CSE: HUGE / FRA: 0K9A), a biopharmaceutical company dedicated to building a portfolio of innovative assets and biotech solutions for the treatment of challenging neurodegenerative, inflammatory and metabolic disorders, announces that a complaint was filed on May 1, 2023 in the United States District Court for the Southern District of Florida by GBB Drink Lab, Inc. (“GBB”) against FSD Pharma and its subsidiary, FSD Biosciences, Inc. (collectively, “FSD”). A copy of this complaint was delivered to FSD Pharma on May 9, 2023.

The complaint claims that FSD breached a mutual nondisclosure agreement and misappropriation of trade secrets, violated 18 U.S.C. § 1836, and violated Florida’s Uniform Trade Secrets Act in connection with FSD having discussions with GBB regarding a business opportunity and potential acquisition of GBB. FSD ultimately did not acquire GBB.

FSD has reviewed the complaint and believes that the allegations are without merit. FSD plans to vigorously defend itself against the allegations. FSD’s policy is not to discuss pending litigation.

Spin-Out and Distribution Update

Further to the Company’s news release dated April 12, 2023 (the “April 12 News Release”), the Company continues to work towards completing the Spin-Out Transaction (as defined in the April 12 News Release) but due to ongoing negotiations with one of the proposed assets to be included in the Spin-Out Transaction the necessary documentation for shareholder approval will not be ready in time for mailing deadline for the June 29, 2023 shareholders meeting. As such, the shareholders meeting on June 29, 2023 will proceed as a general annual meeting of FSD Pharma shareholders and the Company will schedule a separate special meeting to approve the Spin-Out Transaction in the future.

FSD Pharma Inc. is a biotechnology company with three drug candidates in different stages of development. FSD BioSciences, Inc., a wholly owned subsidiary, is focused on pharmaceutical research and development of its lead compound, FSD201, a proprietary ultra-micronized PEA formulation, for the treatment of inflammatory diseases. Lucid Psychss Inc., a wholly owned subsidiary, is focused on the research and development of its lead compounds, Lucid-Psych and Lucid-MS. Lucid-Psych is a molecular compound identified for the potential treatment of mental health disorders, and expanding this category, the Company is investigating other products addressing acute medical needs due to the abuse of drugs such as alcohol. Lucid-MS is a molecular compound identified for the potential treatment of neurodegenerative disorders.