FSD Pharma
Cannabis

FSD Pharma Inc (OTCMKTS: FSDDF) Cannabis Sales License & Prismic Acquisition Trigger Upside Action

FSD Pharma Inc (OTCMKTS: FSDDF) has started climbing the ladder after succumbing to short selling pressure in the first quarter. After shedding more than 50% in market value, the stock has bottomed out and broken out of a tight trading range.

FSD Pharma Price Analysis

The stock is already up by more than 30%, since the start of the second quarter, as the upside action continues to gather pace. A spike in share price, as well as market activity in recent weeks, is in response to a string of positive developments that continue to revitalize investor’s sentiments.

At the end of Q1, FSD Pharma confirmed plans to establish a presence in Canada’s Insurance regime. In the recent past, the company has secured a cannabis sales license that paves the way for it to expand its footprint into the burgeoning cannabis marketplace.

The announcement that the company is poised to complete the acquisition of Prismic Pharmaceuticals is a major development poised to strengthen the stock’s market sentiments. With price action activity in recent weeks, pointing to further upside action, FSD Pharma looks set to break out from one-year lows.

FSDDF Daily Chart

A spike to the $0.21 mark has opened the door for the stock to make a run for the $0.30 mark, the next resistance level, standing in the way of the emerging uptrend. A rally followed by a close above the resistance level could see the stock turning bullish, opening the door for it to make a run for 52-week highs of $0.88.

Considering the long term engulfing bear trend, below the $0.30 mark, FSD Pharma remains susceptible to further drops. However, given that the stock appears to have clocked a bottom, further gains appear to be in sight as investors react to a string of positive developments underscoring long-term growth prospects.

What Does FSD Pharma Do?

FSD Pharma specializes in the production of medical cannabis. The company also develops indoor pharmaceutical grade cannabis in addition to carrying out research and development of various cannabinoid-based treatments, targeting central nervous system disorders.

Prismic Pharmaceutical Acquisition

FSD Pharma price action looks set to receive a boost on the confirmation of plans to acquire Prismic Pharmaceuticals. The acquisition is a significant coup as it paves the way for FSD Pharma to play a pivotal role in addressing the opioid crisis with synthetic cannabinoids.

Prismic Pharmaceuticals is currently working on novel non-addictive prescription drugs to counter opioid crisis based formulations.

“This transaction symbolizes FSD Parma’s vision of acquiring a platform company to advance research and development of FDA-approved applications of synthetic cannabinoids and other synergistic molecules. [..]This is a very exciting day for FSD Pharma that we believe represents a paradigm shift in the development and outlook of our company,” said FSD Pharma Executive Co-Chairman & CEO, Dr. Raza Bokhari.

Cannabis Sales License

The acquisition comes just days after FSD Pharma secured sales license from Health Canada that allows it to start selling cannabis under the Cannabis Act. The company anticipates an amended sales license that will enable it to also to sell dried and fresh cannabis flower.

Plans are already underway to scale up cannabis production as a way of taking advantage of the growing demand for cannabis products both for recreational and medicinal use.

“Our sales license opens the door for our partner Canntab Therapeutics to commence sales of its suite of novel cannabis oral dose delivery platforms, including CBD and THC capsules, in Canada and global markets. We expect that this will provide an immediate benefit to both parties since FSD is entitled to a share of Can tab’s revenue from sales as a result of the collaboration and profit sharing agreement l,” added Zeeshan Saeed, President, and Founder.

Bottom Line

After plunging to one-year lows, FSD Pharma share price no longer reflects the company’s tremendous potential in view of recent developments. The acquisition of Prismic Pharmaceuticals is set to strengthen the company’s prospects on expanding its operations into the business of combating the Opioid crisis.

Health Canada sales license is another milestone that safeguards the company’s long term prospects as it can now engage in cannabis product sales in the country. While the stock is up by more than 30% in Q2, it still has a lot of room to run on the upside, after the harrowing crash of 2018.

FSD Pharma is likely to continue rising from the dead after an excellent start to Q2 on renewed investor interest.

We will be updating our subscribers as soon as we know more. For the latest updates on FSDDF, sign up below!

Disclosure: We have no position in FSDDF and have not been compensated for this article.

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FSD Pharma Inc (OTCMKTS: FSDDF) Cannabis Sales License & Prismic Acquisition Trigger Upside Action
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