Become A Featured Company

FSD Pharma Looks to Grow Cannabinoids in Algae

Ryan Allway

February 6th, 2019

Exclusive, News, Top Story

Algae-based technologies have become a popular source of everything from alternative fuel to nutritional supplements. Like bacteria, algae can also be used to produce a wide range of bioactive recombinant proteins that can be leveraged to create a wide range of other molecules—including high-value therapeutic molecules. Cutting-edge researchers are looking at ways to create synthetic cannabinoids using these platforms as well.

FSD Pharma Inc. (CSE: HUGE) (OTC: FSDDF) (FRK: 0K9) recently signed a letter of intent with Solarvest BioEnergy Inc. (TSX-V: SVS) to apply Solarvest’s algae platform to develop pharmaceutical grade cannabinoids. The move could dramatically disrupt current cannabinoid procurement methods by reducing the time, space, and costs associated with cannabis cultivation, particularly for medical cannabis subject to GMP certification standards.

In this article, we will take a closer look at what makes algae a unique platform for cannabinoid production, as well as how the new agreement with Solarvest fits into FSD Pharma’s plans to become a leading cannabis producer.

Why Algae?

Most investors have probably heard of algae being used as a source of renewable energy since it consumes carbon dioxide and emits hydrogen and oxygen. A lesser known attribute of algae is that it’s chloroplasts are capable of manufacturing of bioactive recombinant proteins, which means that algae can be genetically-engineered to produce a wide range of therapeutic proteins that can be used to create millions of different molecules.

There are several benefits from algae-generated proteins:

  • They are devoid of any known human pathogens.
  • They are comparatively very inexpensive to produce.
  • They produce consistent, high yield concentrations of final products.
  • They can produce very complex therapeutic proteins.
  • The production environment can be carefully controlled.
  • Replicable processes expedite product development.

Solarvest BioEnergy Inc. (TSX-V: SVS) has already introduced algae-generated omega-3 products into commercial markets and successfully created bone morphogenetic protein (BMP)—a high value complex compound used in orthopedic surgery to accelerate and enhance bone growth. The company has also built a portfolio of nearly 70 patents that have been filed and granted around numerous therapeutic areas.

Landmark Agreement

FSD Pharma and Solarvest plan to develop a research project for the purpose of developing a proof of concept that algae can express cannabinoids. Once the proof of concept is complete, the companies will enter into licensing agreements whereby Solarvest will provide exclusive worldwide rights to the cannabinoids to produce prescription drugs that can treat diseases affecting the nervous system—FSD Pharma’s primary target indication.

“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.”

In addition to the licensing agreement, Solarvest will pay a royalty fee to FSD Pharma on sales or licensing of any cannabinoids other than those targeting the nervous system, equal to five percent of net sales or net license fees. These royalties will be reduced to three percent after Solarvest has paid an aggregate of $3 million in royalty fees. These royalties could create a meaningful high-margin revenue stream if the technology is successful.

Looking Ahead

FSD Pharma Inc. (CSE: HUGE) (OTC: FSDDF) (FRK: 0K9) aims to become the largest licensed indoor hydroponic producer of cannabis in the world by converting a former Kraft Foods plant in Cobourg, Ontario into a state-of-the-art cultivation facility. The company’s recent agreement with Solarvest underscores this commitment to become a leading cannabis producer and demonstrates management’s outside-of-the-box thinking in that regard.

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

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Network Partners

Follow Us on Social Media

LinkedIn

About CFN Media Group

CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading