FSD Pharma Inc. (NASDAQ: HUGE) has launched the share buyback program. The company Board of Directors has provided the approval to the company to buy back up to 2,000,000 of its Subordinate Class B Voting Shares from time to time over the next 12 months at prevailing market prices to enable the Company to utilize its excess cash reserves to strategically provide profit to the shareholders.
As per the buyback program, the Company will buy up to 2,000,000 Subordinate Voting Shares, being nearly 5% of the Company’s issued and outstanding Subordinate Voting Shares as of the date hereof. The share buyback program will start on January 4, 2022, and ends on December 30, 2022, unless ended earlier by the Company.
Furthermore, the company confirmed that5 the share repurchase program does not force the Company to buy any Subordinate Voting Shares. If management chooses it has better use for its cash reserves, it is not required to continue to buy Subordinate Voting Shares, and share buying could be barred or ended at any time by the company.
In addition, the main focus of FSD Pharma is on the progress of its drug candidates toward the clinic. Moreover, the company realizes that there may be a strategic opportunity to improve shareholder value without jeopardizing its ambitious growth plans with more than USD 39.3 million in cash and cash equivalents on its balance sheet as of September 30, 2021.
The company is confident that its stock is substantially undervalued. This will enable it to continue investing in its future, while, at the same time, also investing in the exceptional value that its shares represent. Moreover, the company clarified that the actual number of Subordinate Voting Shares purchased, the timing of buying and buying price will be subject to market conditions.