Celly Nu secures distribution deal in the Caribbean

TORONTO - Quantum (NASDAQ:QMCO) BioPharma Ltd. (NASDAQ:QNTM) (CSE:QNTM) (FRA:0K91), a biopharmaceutical company, has announced through a press release that its licensee, Celly Nutrition Corp. ("Celly Nu"), has signed a Master Distribution Agreement with FUSION Distribution Group to distribute its new beverage product, unbuzzd™, in Puerto Rico, the Caribbean, and parts of Central and South America.

unbuzzd™ is a proprietary blend of vitamins, minerals, and botanical extracts designed to support the body's natural processes for metabolizing alcohol and promoting alertness. The beverage is currently available on Amazon (NASDAQ:AMZN) in Ready-to-Mix (RTM) powder sticks, with Ready-to-Drink (RTD) 12oz cans expected to be launched soon.

The partnership with FUSION, a leading brand incubator and distributor in the region, will enable Celly Nu to expand its market presence. FUSION's distribution network includes major retail customers such as Walmart (NYSE:WMT), Walgreens, CVS, Costco (NASDAQ:COST), Sams, Farmacias Caridad, Pueblo Supermarkets, Supermax, and many others.

John Duffy, CEO of Celly Nutrition Corp. and former Vice-President of National Sales of Coca-Cola (NYSE:KO), expressed optimism about the partnership, highlighting FUSION's track record in brand growth. Eduardo Santacana, CEO of FUSION Consulting Group, also commented on the potential of unbuzzd™ to bring unique benefits to consumers.

Celly Nutrition, with its commitment to wellness and recovery supplements, has secured an exclusive global licensing agreement with Quantum BioPharma Ltd. This strategic move aims to position the company as a leader in developing solutions for responsible alcohol consumption.

The news release contains forward-looking statements regarding the anticipated benefits of the partnership and the launch of the RTD format of unbuzzd™. However, these statements are based on assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. No medical, treatment, or health benefit claims about unbuzzd™ have been evaluated by the U.S. Food and Drug Administration, Health Canada, or any other regulatory authorities.

This article is based on a press release statement and aims to provide factual information without endorsing the claims made by Quantum BioPharma Ltd. or Celly Nutrition Corp.

In other recent news, Quantum BioPharma Ltd. announced a partnership with Ingenu CRO Pty Ltd. to conduct an observational clinical study on primary progressive multiple sclerosis (MS). The study is a precursor to a future phase 2 clinical trial of the drug candidate Lucid-21-302, also known as Lucid-MS. Quantum BioPharma's Vice-President of Scientific and Clinical Affairs, Dr. Andrzej Chruscinski, highlighted the importance of this research for the development of Lucid-21-302.

In other developments, FSD Pharma Inc. has been active with several significant moves. The company settled debts by issuing 650,000 Class B Subordinate Voting shares and won a court judgment against its former CEO, Dr. Raza Bokhari, who is now required to pay over CAD $2.9 million plus interest. FSD Pharma received approval to commence a Phase 1 clinical trial for its drug candidate, Lucid-21-302, for treating multiple sclerosis.

Lastly, FSD Pharma was given approval to begin its METAL-2 trial in the United States, exploring treatments for acute alcohol intoxication. The company also inked an exclusive agreement with the University of Southern California to assess a novel dietary supplement technology for potential commercialization. These are the latest developments in the biopharmaceutical sector.

InvestingPro Insights

As Quantum BioPharma Ltd. (NASDAQ:QNTM) expands its market presence through its licensee's distribution agreement, investors should consider some key financial metrics and insights from InvestingPro.

Despite the positive news about the distribution agreement, QNTM's financial health presents a mixed picture. The company's market capitalization stands at a modest $8.53 million, reflecting its current small-cap status. This aligns with the company's focus on growth and expansion strategies, such as the licensing agreement with Celly Nutrition Corp.

InvestingPro Tips highlight that QNTM holds more cash than debt on its balance sheet, which could provide financial flexibility as it supports its licensees' expansion efforts. Additionally, net income is expected to grow this year, potentially signaling improving financial performance.

However, investors should note that QNTM is not currently profitable, with a negative P/E ratio of -0.98 for the last twelve months as of Q2 2024. The company's stock has also experienced significant volatility, with a 15% return over the last week contrasting sharply with a 94.1% decline over the past year.

These financial metrics underscore the speculative nature of investing in early-stage biopharmaceutical companies like QNTM. While the distribution agreement for unbuzzd™ represents a potential growth avenue, investors should carefully consider the company's financial position and market performance.

For a more comprehensive analysis, InvestingPro offers 12 additional tips for QNTM, providing deeper insights into the company's financial health and market position.

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