FSD Pharma's Investments in Cutting-Edge Tech Could Pay Big Dividends -- CFN Media


SEATTLE, Feb. 26, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article discussing FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) (FRA: 0K9). The company has become well-known for its massive cannabis cultivation facility that’s being built in a former Kraft plant in Cobourg, Ontario, but investors should also take note of its investment in cutting-edge research and development, including delivery systems and cultivation techniques.

Many cannabis companies have predictable business models—they grow and sell cannabis flower or perhaps extract them into edibles or vape pens. While most companies are focused on maximizing their production footprint, some companies have placed an additional focus on research and development. These investments could pay big dividends in the future if they prove to be breakthroughs in cannabis cultivation or delivery.

New Delivery Methods

The medical cannabis market could reach $55 billion by 2024, according to Global Market Insights, driven by growing demand to treat chronic pain caused by neurological disorders, cancer, HIV/AIDS, and arthritis. In addition, the increasing preference of cannabis over opioids could add significantly more upside over the coming years. The key is developing effective delivery systems for various target indications.

FSD Pharma recently announced a $1.5 million strategic investment in and profit-sharing agreement with Pharmastrip Corp., developer of medical cannabis-infused oral thin film strips. Under the terms of the agreement, FSD will install Pharmastrip’s proprietary equipment at its Cobourg, Ontario facility and use the equipment to manufacture oral thin film strips and Pharmastrip will grant FSD an exclusive license to manufacture and sell in Canada.

“FSD made this strategic investment because of the potential we see in alternative delivery methods for cannabis, such as Pharmastrip’s oral thin film strips,” said FSD Pharma Founder and President Zeeshan Saeed. “We expect the demand for alternative delivery methods for cannabis for both THC and CBD to increase as the market continues to develop. [We] look forward to beginning production once the necessary license has been granted.”

New Production Methods

Thousands of acres of cannabis are harvested each year across North America. With the legalization of medical and adult-use cannabis in Canada and certain U.S. states, these figures are poised to significantly expand over the coming years. The problem is that growing and harvesting cannabis plants is an energy intensive and expensive process—a process that some companies are hoping to short-circuit with new techniques.

FSD Pharma recently announced a non-binding letter of intent with Solarvest BioEnergy Inc. to research the use of algal expression technology in developing pharmaceutical-grade cannabinoids. The company is already using algae to create omega-3 products for the nutraceutical industry, and the same approach could be used to develop cannabinoids in a much faster and more reliable process.

“If successful, this could dramatically disrupt current cannabis cultivation methods for medical purposes,” said FSD Pharma President Zeeshan Saeed. “It could reduce the majority of time, space, and costs associated with cannabis cultivation for medical purposes, specifically cannabis with GMP Certification. We are very pleased to collaborate with Solarvest on the development of promising alternative methods of cannabinoid production.”

Looking Ahead

FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) (FRA: 0K9) continues to invest heavily in cutting-edge technologies that could revolutionize the way cannabis is grown and consumed. At the same time, the company continues to make progress in building its massive cannabis cultivation facility in Cobourg, Ontario, which could make it one of the largest licensed producers in Canada at full production.

On February 19, the company announced that it received a Standard Processing License from Health Canada. The license enables the facility to begin packaging cannabis for inspection by Health Canada and is a prerequisite to applying for a pre-sale inspection, which management expects will be scheduled very soon. The next steps are receiving the final sales license and beginning production at the facility.

For more information, visit the company’s website at www.fsdpharma.com.

Please follow the link to read the full article:

https://www.cannabisfn.com/fsd-pharmas-investments-in-cutting-edge-tech-could-pay-big-dividends/

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Frank Lane
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Flane@cannabisfn.com