FSD Pharma Awarded $2.81 Million in Cost Awards From Dr. Raza Bokhari

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, today announced that in a cost award decision (the “ Costs Award ”) dated May 6, 2023, the Honourable J. Douglas Cunningham, K.C. (“ Justice Cunningham ”) ruled in favor of FSD Pharma, awarding the Company approximately $2.81 million all in Canadian dollars costs of arbitration in the arbitration between FSD Pharma and its former Chief Executive Officer, Dr. Raza Bokhari.

In July 2021, the FSD Pharma Board of Directors unanimously voted to terminate the employment of Dr. Bokhari as Chief Executive Officer for cause. Dr. Bokhari subsequently brought a wrongful dismissal claim against FSD Pharma by way of arbitration, which was dismissed in its entirety by Justice Cunningham in a merits award dated November 9, 2022 (the “ Merits Award ”). In the Merits Award, Justice Cunningham also held Dr. Bokhari responsible for FSD Pharma’s costs of the arbitration. The Merits Award is available at the following link: https://fsdpharma.com/wp-content/uploads/2023/05/2023-03-01-Application-Record-Applicant-FSD-Pharma-Inc.pdf .

The Costs Award particularizes the amount of FSD Pharma’s costs entitlement. The total costs awarded to FSD Pharma in the Costs Award are comprised of legal fees of $1,981,462.91, disbursements of $509,005.33 and HST of $323,760.91, for a total of $2,814,229.15.

FSD Pharma appreciates Justice Cunningham’s candor and ruling and is optimistic that Dr. Bokhari will relent in his baseless pursuit of compensation and damages undue to him.

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.