On December 30, FSD Pharma Inc. (HUGE) announced a share repurchase program in order to return value to its shareholders. Consequently, the stock was trading at $1.02 apiece with a 3.78% gain premarket, at the last check.
In the previous trading session, the HUGE stock barely remained in the green with a slight gain of 0.05% at $0.9828. Following the announcement, the stock made a huge jump in the premarket session.
HUGE stock and its Movements
The specialty biotech pharmaceutical research and development company, FSD Pharma Inc. was founded in1994. Based in Canada, the company has a market capitalization of $39.71 million. Currently, the company has 40.42 million shares outstanding in the market.
In the past five days, HUGE stock has witnessed a loss of 7.28%, while losing 16.00% last month. Moreover, the stock has subtracted a value of 36.18% in the past three months and 37.00% year to date.
Share Repurchase Program
On Thursday, the company announced to strategically return value to shareholders with its excess cash reserves. HUGE’s board of directors authorized the repurchase of up to 2,000,000 of its Subordinate Class B Voting Shares. Moreover, the company will repurchase the shares at the market price over the next twelve months. Furthermore, these shares represent 5% of the company’s issued and outstanding Subordinate Voting Shares.
According to the Interim CEO of HUGE, Anthony Durkacz, the company had cash and cash equivalents of over 39.3 million on September 30, 2021. Given the huge sum, the company is taking the strategic opportunity of returning value to its shareholders.
Further, the commencement date of the share repurchase program is January 4, 2022. Moreover, the program is expected to terminate on December 30, 2022. In addition, the company may decide to terminate the share repurchase program at any time upon its discretion. The purchase of Subordinate Voting Shares would be canceled by the company.
Other Recent Developments
On December 09, HUGE announced the formation of a Regulatory Advisory Board (RAB). Furthermore, the company has appointed Joga Gobburu and Mary Melnyk as members of the board.
Dr. Gobburu is a renowned scientific leader in pharmacometrics. Moreover, he is a Professor at the School of Pharmacy and the School of Medicine, University of Maryland, Baltimore, MD. Over the years, he has also served in various positions at the U.S. FDA.
Expert in manufacturing and regulatory requirements, Dr. Melnyk is currently the Senior Regulatory Consultant at Innovalinks. Moreover, she has also served at the Academy of Applied Pharmaceutical Science, Biovail Corporation, EMD Merck Biomira, Novartis Canada/CIBA Division, and many others.
