FSD Pharma Inc. (CSE: HUGE; OTCQB: FSDDF) acquired just under 10% of Toronto-based company Huge Shops. The $1.3 million strategic investment will see FSD Pharma moving into the real estate industry through an alliance between Huge Shops and privately-held franchise corporation Chairman Brands.
The terms of the investment allow Huge Shops to acquire no less than 10 retail sites from Chairman Brands subsidiaries such as Coffee Time, with all 10 initial sites aimed at Ontario.
The investment deal also allows the opportunity for additional sites to be acquired through Chairman Brands companies down the line. Chairman Brands also franchises such as New Orleans Pizza, Mia Fresco, and Robin’s Donuts.
Following the investment, Huge Shops officially announced its intention to obtain retail licenses from the Alcohol and Gaming Commission of Ontario for supplying recreational cannabis.
The Coffee Time management team and real estate holdings will be used as a springboard for Huge Shops-branded cannabis stores. FSD Pharma stated the end goal is to bring the knowledge and resources of an existing coffee brand in alignment with the marijuana industry to create more value for the retail real estate holdings of both companies.
While awaiting final approval on a retailer operator license for the first store to open in April of 2019, plans are in the works for a projected 75 total Huge Shops retail locations across Canada.
FSD Pharma Co-Founder Anthony Durkacz commented on the investment deal:
FSD is currently operating 25,000 square feet of indoor grow space in Ontario, with an additional 220,000 square feet of greenhouse to be up and running early next year pending Health Canada approval for the additional space.
Earlier this month, FSD Pharma also announced the company is teaming up with Canntab Therapeutics Limited (CSE: PILL) for a clinical trial at the University Of British Columbia. That upcoming trial will study the effects of using cannabis rather than opioid-based medication for post-surgery pain management.