Quantum BioPharma's licensee expands retail reach with AATAC deal

TORONTO - Quantum BioPharma Ltd. (NASDAQ:QNTM), a biopharmaceutical company with a market capitalization of $19.2 million, has announced that its licensee, Celly Nutrition Corporation, the creator of the hangover mitigation beverage unbuzzd™, has entered into a partnership with the Asian American Trade Associations Council (AATAC) to increase the product's retail availability. The company's stock has shown significant momentum, gaining over 95% year-to-date according to InvestingPro data.

The agreement, focusing on unbuzzd™'s On-the-Go Powder Stick Packs, aims to boost sales and customer base by leveraging AATAC's network, which encompasses over 80,000 locations across the United States and Puerto Rico, including prominent convenience stores like 7-Eleven and Shell.

Celly Nutrition's CEO, John Duffy, expressed enthusiasm about the partnership's potential to enhance unbuzzd™'s retail presence and access to consumers. Sunil Capita, AATAC's National Programs Director, noted the growing importance of health and wellness products in the retail space, with recovery products leading the trend.

unbuzzd™ is designed to accelerate alcohol metabolism, restore mental clarity, and reduce hangover symptoms. It has been scientifically validated in a double-blind, placebo-controlled clinical trial to significantly speed up the reduction of blood alcohol concentration.

Quantum BioPharma, through its subsidiary Lucid Psycheceuticals Inc., initially developed unbuzzd™ and later spun out its over-the-counter version to Celly Nutrition. Quantum retains a 25.71% ownership stake in Celly Nutrition as of June 30, 2024, and is entitled to royalty payments from unbuzzd™ sales. InvestingPro analysis shows the company maintains a healthy current ratio of 1.8 and holds more cash than debt on its balance sheet, though it's currently not profitable with an EBITDA of -$15.65 million in the last twelve months.

The press release also includes forward-looking statements regarding the partnership's potential impact and Quantum BioPharma's plans. These statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. According to InvestingPro analysis, the stock is currently undervalued, with 8 additional ProTips available to subscribers, including detailed insights on price momentum and financial health metrics.

This partnership announcement is based on a press release statement and reflects the company's plans as of the date of the release.

In other recent news, Quantum BioPharma Ltd. has reported several notable developments. The company completed a $5 million funding round, which will support research and development, commercialization efforts, and general working capital needs. Quantum BioPharma also announced significant progress in its product pipeline, including the completion of a clinical trial for its dietary supplement unbuzzd, which showed promising results in reducing Blood Alcohol Concentration and hangover symptoms. Additionally, the company reported favorable outcomes from a Phase 1 trial of its Multiple Sclerosis drug, Lucid-21-302, which was well-tolerated with no serious adverse events.

In a strategic move, Quantum BioPharma has increased its cryptocurrency holdings to $2 million, reflecting confidence in digital assets as a hedge against currency fluctuations. The company has also welcomed Terry Lynch to its board of directors, bringing expertise in fundraising and biotech investments. Meanwhile, Quantum BioPharma's licensee, Celly Nutrition Corporation, is expanding the distribution of unbuzzd to Puerto Rico through a partnership with FUSION Distribution Group. These recent developments highlight Quantum BioPharma's ongoing efforts to advance its biopharmaceutical solutions and explore new market opportunities.

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