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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index inched up 0.62 point to 146.97 Thursday, while the Canadian Securities Exchange Composite Index gained 8.68 points to 474.12. FSD Pharma Inc. (HUGE) gained 63 cents to $5.66 on 1.46 million shares today after notifying Health Canada that it is forfeiting its cannabis licences so that it can better focus on its efforts to bring a COVID-19 treatment to market (more on this below). The cannabis licences are held by the company's subsidiary, FV Pharma Inc. The company will suspend all activities by FV Pharma within 30 days and will try to sell all of the assets at its Cobourg, Ont., cannabis operation.
Despite the fact that FSD Pharma already publicly declared that it had "implemented a systematic and orderly scale-back of FV Pharma's cultivation operations" in March, FSD Pharma initially popped on the news, reaching an intraday trading high of $9.09 before giving back most of those gains, finishing at $5.66. In its most recent results filing, for the quarter ended March 31, FSD Pharma said it had "initiated the process to sell its Cobourg facility and exit the medical cannabis industry." The company expects to receive about $12-million from the sale of the Cobourg facility and associated cannabis assets.
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