Core Viewpoint - Quantum BioPharma Ltd. intends to declare a special dividend consisting of Contingent Value Rights (CVRs) to holders of its Class B Subordinate Voting Shares, reflecting the company's commitment to its shareholders [1][3]. Group 1: Special Dividend and CVRs - Each CVR will entitle holders to receive a pro rata portion of a minimum of 10% and a maximum of 50% of the net proceeds from the company's legal action against certain banks, seeking damages exceeding USD 700 million for alleged stock price manipulation [2][8]. - The exact payout percentage for the CVRs will be approved by the Board at a later date [2][3]. - The record date for the proposed special dividend has not yet been established, and further updates will be provided [3]. Group 2: Company Overview - Quantum BioPharma is focused on developing innovative biopharmaceutical solutions for neurodegenerative and metabolic disorders, with drug candidates at various development stages [4]. - The company’s lead compound, Lucid-MS, aims to prevent and reverse myelin degradation, a key factor in multiple sclerosis, and is currently in preclinical models [4][8]. - Quantum BioPharma retains a 20.11% ownership stake in Unbuzzd Wellness Inc. and has a royalty agreement that includes 7% of sales until total payments reach USD 250 million, after which the royalty will drop to 3% [4]. Group 3: Legal and Regulatory Considerations - The issuance of the CVRs is subject to necessary approvals, regulatory requirements, and finalization of tax, legal, and operational matters [3][8]. - There is no assurance that any proceeds from the litigation will be received or that the CVRs will result in any payment to holders [3][7].
Quantum BioPharma Announces Intention to Declare Special Dividend of Contingent Value Rights (CVRs) Linked to Future Litigation Settlement Proceeds