Quantum BioPharma sets October 27 record date for litigation-linked CVRs

Published 03/10/2025, 12:06
Quantum BioPharma sets October 27 record date for litigation-linked CVRs

TORONTO - Quantum BioPharma Ltd. (NASDAQ:QNTM) announced Friday that its Board of Directors has established October 27, 2025, as the record date for distributing contingent value rights (CVRs) to holders of its Class B Subordinate Voting Shares. The company’s stock, currently trading at $18.10, has shown remarkable momentum with a 130% gain over the past six months and a 392% return year-to-date, according to InvestingPro data.

The CVRs will be issued on a one-for-one basis, entitling holders to receive between 10% and 50% of any net proceeds recovered from the company’s ongoing legal action against CIBC World Markets, RBC Dominion Securities, and others. The lawsuit alleges stock price manipulation and seeks damages exceeding $700 million. With a current market capitalization of $71 million and trading at a price-to-book ratio of 18.9x, InvestingPro analysis suggests the stock may be overvalued at current levels.

Shareholders will only receive payments if the company obtains proceeds from the litigation through settlement or final judgment. The CVRs will not be listed on any exchange, cannot be transferred, will not carry interest or voting rights, and are redeemable only for cash if the company receives qualifying net proceeds.

"This record date is a key milestone in aligning potential future recoveries from the Company’s Litigation directly with our shareholders through a simple and enforceable right that pays only if value is realized," said Zeeshan Saeed, Founder, CEO and Executive Co-Chairman.

The distribution date for the CVRs remains undetermined as it depends on the company receiving qualifying proceeds from the litigation. Quantum BioPharma noted there is no guarantee that any payment will be made under the CVRs.

Quantum BioPharma develops treatments for neurodegenerative and metabolic disorders through its subsidiary Lucid Psycheceuticals, which is researching Lucid-MS, a compound targeting multiple sclerosis. The company also holds a 20.10% stake in Unbuzzd Wellness Inc. Investors should note that the company’s next earnings report is scheduled for November 6, 2025, which could provide crucial updates on its development pipeline and financial position.

The information in this article is based on a press release statement from Quantum BioPharma.

In other recent news, Quantum BioPharma Ltd. has received final toxicity reports for its multiple sclerosis drug candidate, Lucid-21-302. The reports include a 90-day oral toxicity study and a toxicokinetic study, which are crucial for the company’s upcoming Investigational New Drug application with the U.S. Food and Drug Administration. Additionally, Quantum BioPharma announced the appointment of Dr. Jack Antel as a clinical advisor for its MS program, focusing on the clinical development of Lucid-MS. In corporate governance updates, shareholders approved all resolutions at the company’s annual general meeting, with significant participation from both Class A and Class B shareholders. Furthermore, Health Canada has granted a product license for Quantum’s natural health product, Qlarity, allowing it to be marketed in Canada for various health benefits. The company also plans to seek shareholder approval for a private placement of Class A multiple voting shares, aiming to raise up to $600. These developments underscore Quantum BioPharma’s ongoing efforts in drug development and corporate growth.

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