Quantum BioPharma Ltd. has reached a significant corporate milestone with the expiration of the final tranche of warrants issued to hedge funds and investment funds. The 53,147 warrants, which originally represented 3,454,543 pre-reverse-split warrants from a 2020 financing arrangement, expired at 5 p.m. ET, marking the completion of this financial instrument series. The company simultaneously reaffirmed October 27, 2025 as the record date for the distribution of contingent value rights to Class B Subordinate Voting Shareholders.
These CVRs will be distributed on a one-for-one basis and entitle holders to a potential pro rata share of 10% to 50% of any net proceeds from Quantum BioPharma's substantial $700 million litigation against CIBC World Markets, RBC Dominion Securities, and other defendants. This litigation represents a significant potential value driver for shareholders, with the CVR mechanism designed to directly return a substantial portion of any successful outcome to investors. The warrant expiration and CVR confirmation come as Quantum BioPharma continues to advance its biopharmaceutical portfolio focused on neurodegenerative and metabolic disorders, along with alcohol misuse disorders.
Through its subsidiary Lucid Psycheceuticals Inc., the company is developing Lucid-MS, a patented new chemical entity that has demonstrated the ability to prevent and reverse myelin degradation in preclinical models. Myelin degradation represents the underlying mechanism of multiple sclerosis, positioning Lucid-MS as a potentially transformative treatment approach. Quantum BioPharma also maintains strategic interests in consumer health through its ownership stake in Unbuzzd Wellness Inc., retaining 20.11% of the company as of March 31, 2025.
The arrangement includes royalty payments of 7% of sales from the unbuzzd product line until payments to Quantum BioPharma total $250 million, after which the royalty decreases to 3% in perpetuity. The company preserves full rights to develop similar products for pharmaceutical and medical applications. Additional corporate activities are managed through FSD Strategic Investments Inc., Quantum BioPharma's wholly owned subsidiary that maintains a portfolio of strategic investments representing loans secured by residential or commercial property. Investors can access the latest news and updates relating to QNTM through the company's newsroom at https://ibn.fm/QNTM.
