Quantum BioPharma Announces Intention to Declare Special Dividend of Contingent Value Rights (CVRs) Linked to Future Litigation Settlement Proceeds
Each CVR will entitle the holder to receive a pro rata portion of a minimum of 10% and a maximum of 50% of the net proceeds, ultimately recovered by the Company, if any, in connection with its legal action against CIBC World Markets, RBC Dominion Securities, and others (collectively, the 'Banks'), which seeks damages in excess of USD$700+ million related to alleged stock price manipulation and spoofing (the 'Litigation'). The Board will approve the exact pay-out percentage at a later date.
The record date for the proposed special dividend has not yet been set, and the Company will provide further updates in due course.
The CVRs:
Will not be listed on any exchange or marketplace;
Will be non-transferable and non-assignable;
Will not carry interest or voting rights;
Will be redeemable only for cash, and only in the event that the Company receives net proceeds from a resolution of the Litigation (whether by settlement or final judgment).
'Shareholders are our biggest asset. This proposed special dividend underscores our commitment to ensuring our shareholders benefit directly from the outcome of this significant litigation,' said Zeeshan Saeed, CEO of Quantum BioPharma. 'We are aligning interests by creating a legally enforceable right that rewards holders if and when value is recovered.'
The issuance of the CVRs remains subject to necessary approvals, regulatory requirements, and finalization of tax, legal, and operational matters. There can be no assurance that any Litigation proceeds will be received or that the CVRs will result in any payment to holders.
About Quantum BioPharma Ltd.
Quantum BioPharma (NASDAQ: QNTM) is a biopharmaceutical company dedicated to building a portfolio of innovative assets and biotech solutions for the treatment of challenging neurodegenerative and metabolic disorders and alcohol misuse disorders with drug candidates in different stages of development. Through its wholly owned subsidiary, Lucid Psycheceuticals Inc. ('Lucid'), Quantum BioPharma is focused on the research and development of its lead compound, Lucid-MS. Lucid-MS is a patented new chemical entity shown to prevent and reverse myelin degradation, the underlying mechanism of multiple sclerosis, in preclinical models. Quantum BioPharma invented unbuzzd™ and spun out its OTC version to a company, Unbuzzd Wellness Inc. (formerly Celly Nutrition Corp.), led by industry veterans. Quantum BioPharma retains ownership of 20.11% (as of March 31, 2025) of Unbuzzd Wellness Inc. The agreement with Unbuzzd Wellness Inc. also includes royalty payments of 7% of sales from unbuzzd™ until payments to Quantum BioPharma total $250 million. Once $250 million is reached, the royalty drops to 3% in perpetuity. Quantum BioPharma retains 100% of the rights to develop similar products or alternative formulations specifically for pharmaceutical and medical uses. Quantum BioPharma maintains a portfolio of strategic investments through its wholly owned subsidiary, FSD Strategic Investments Inc., which represents loans secured by residential or commercial property.
For more information on Quantum BioPharma, please visit www.quantumbiopharma.com.
Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian and U.S. securities legislation. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "intends", "estimates", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. "Forward-looking information" includes statements about: the Company's focus on the research and development of Lucid-MS to prevent and reverse myelin degradation; the Company's Lucid-21-302 clinical development program in multiple sclerosis advancing towards human phase-2 efficacy trials; the Company's intention to retain 100% of the rights to develop products for pharmaceutical and medical uses; the Company's intention to maintain a portfolio of strategic investments through FSD Strategic Investments Inc.; the Company's intention to declare a special dividend consisting of CVRs with the terms and conditions of which are subject to various considerations as outlined herein; the Board's approval of the pay-out percentage and each CVR will entitle the holder to receive a pro rata portion of a minimum of 10% of the net proceeds, if any, ultimately recovered by the Company in connection with the Litigation.
Such forward-looking information and statements are based on numerous assumptions, including: the Company's assessment of market conditions, its ability to gain market share, and its potential competitive edge are accurate; the Company will have the ability to carry out its plans with respect to its new innovation and offerings, including its ability to conduct research and development of Lucid-MS; the Company's Lucid-21-302 clinical development program in multiple sclerosis will advance towards human phase-2 efficacy trials; the Company will retain 100% of the rights to develop similar product or alternative formulations specifically for pharmaceutical and medical uses; the Company will seek new business opportunities; the Company will increase efficiency in its processes and partnerships; the Company will have the ability to carry out its other goals and objectives the Company's intention to maintain a portfolio of strategic investments through FSD Strategic Investments Inc.; the Company's ability to declare a special dividend consisting of CVRs with the terms and conditions outlined herei; including obtaining legal and regulatory approvals for the CVR's; the Company's ability to prevail in the Litigation and or reach a settlement with the Banks which results in net proceeds being available for distribution to the holders of the Company's Class B Subordinating Voting Shares in the amounts set forth in the CVR's, as approved by the Company.
Forward-looking information and statements involve known and unknown risks, uncertainties, and other factors, that may cause actual events, performance, or achievements in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including but not limited to: the Company's inability to retain 100% of the rights to develop products for pharmaceutical or medical uses; the Company's inability to enhance its drug or product development capabilities and/or maintain a portfolio of strategic investments; the Company's Lucid-21-302 clinical development program in multiple sclerosis not advancing towards human phase-2 efficacy trials; the Company will not have the ability to carry out its other goals and objectives the Company's intention to maintain a portfolio of strategic investments through FSD Strategic Investments Inc.; the Company's early stage of development; government regulation; market acceptance for its products; rapid technological change; dependence on key personnel; dependence on the Company's strategic partners; the fact that preclinical product development is uncertain, and the Company's products may never advance past clinical trials; the fact that results of preclinical studies and early-stage clinical trials may not be predictive of the results of later stage clinical trials; the uncertain outcome, cost, and timing of product development activities, preclinical studies and clinical trials of the Company; the uncertain clinical development process, including the risk that clinical trials may not have an effective design or generate positive results; the potential inability to obtain or maintain regulatory approval of the Company's products; the introduction of competing products that are safer, more effective or less expensive than, or otherwise superior to, the Company's products; the initiation, conduct, and completion of preclinical studies and clinical trials may be delayed, adversely affected or impacted by unforeseen issues; the potential inability to obtain adequate financing; the potential inability to obtain or maintain intellectual property protection for the Company's products; risks that the Company's intellectual property and technology won't have the intended impact on the Company and/or its business; the Company's inability to realize upon the stated claims of product benefits and effectiveness; the Company's inability to realize upon its stated claims of market potential and consumer demand; the Company's will not declare a special dividend consisting of CVRs with the terms and conditions of which are subject to various considerations as outlined herein; each CVR will not entitle the holder to receive a pro rata portion of a minimum of 15% of the net proceeds ultimately recovered by the Company in connection with the litigation. and the risks discussed in the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2024 filed with the SEC on March 28, 2025, as amended with Amendment No. 1 to the Form 20-F filed with the SEC on March 31, 2025,, under the heading 'Risk Factors'. These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Readers are cautioned that the foregoing list is not exhaustive. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events, or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
Contacts:
Quantum BioPharma Ltd.Zeeshan Saeed, Founder, CEO and Executive Co-Chairman of the BoardEmail: Zsaeed@quantumbiopharma.com Telephone: (833) 571-1811
Investor RelationsInvestor Relations: ir@quantumbiopharma.comGeneral Inquiries: info@quantumbiopharma.comSign in to access your portfolio
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
27 minutes ago
- Business Wire
AI Investors Have Opportunity to Join C3.ai, Inc. Fraud Investigation with the Schall Law Firm
LOS ANGELES--(BUSINESS WIRE)-- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Inc. ('C3' or 'the Company') (NYSE: AI) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. C3 announced its financial results for Q1 2025 on August 8, 2025. The Company's revenues fell short of prior guidance, which it attributed in part to disruption related to its sales and services organizations. Based on this news, shares of C3 fell by more than 20% on August 11, 2025. If you are a shareholder who suffered a loss, click here to participate. We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at or by email at bschall@ The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
Yahoo
an hour ago
- Yahoo
2 Top Dividend Stocks Duke It Out. Which Is Better?
Key Points On top of its regular dividend, Costco also occasionally pays out a much bigger special dividend. Both companies increased their dividend this year. Valuation is ultimately what makes one stock a better buy than the other. 10 stocks we like better than Alphabet › When investors think about dividend stocks, they usually start with high-yielding names. Utilities, telecoms, and big consumer staples often dominate the conversation. But sometimes the best dividend opportunities come from companies with low payouts. That's where membership-based wholesale retailer Costco (NASDAQ: COST) and Google parent Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) come in. Both yield less than 1%, making them easy to dismiss for income. Yet, both are outstanding businesses with excellent dividend growth prospects. Costco, specifically, delivers incredible stability and even pays occasional special dividends on top of its regular dividend. Meanwhile, Alphabet has a brand-new payout and is one of the cheapest valuations among big tech. But which one of these two dividend growth stocks edges out the other when compared head-to-head? Costco: Dependable income at a high price Costco has a reputation for consistency, and its dividend reflects that. The company's payout is below 30%, leaving plenty of room for business reinvestment and steady dividend increases over time. Additionally, Costco has increased its dividend every year for more than two decades, with an annual growth rate of around 13% in recent years. The latest raise came this spring, when management boosted the quarterly dividend to $1.30. That puts the annual payout at $5.20 and the dividend yield at roughly 0.5%. Notably, Costco offers more than just its regular dividend. From time to time, the company pays special dividends, too. In early 2024, for instance, shareholders received a $15 special dividend. These extra payouts can make a big difference for long-term holders, even though they come only occasionally. The issue with Costco, however, is the stock's valuation. Shares trade at more than 50 times earnings, a very high multiple for a stock that grew its sales and earnings per share 8% and 13%, respectively, in its most recent quarter. That premium reflects both the quality of the business and investors' willingness to pay up for its reliability. But such a lofty valuation leaves little margin for error. Even though sales and earnings continue to grow at a healthy pace, today's stock price already bakes in years of strong performance. Investors buying now should expect modest returns from here unless Costco delivers upside surprises. Alphabet: Small yield, big upside Alphabet only started paying a dividend in 2024, so it doesn't have Costco's long track record. The payout is small, with an annual dividend of $0.84 per share and a yield of around 0.4%. But the payout ratio is less than 10%. That leaves huge room for growth if management decides to raise the dividend in future years. The company is also aggressively investing in its business (perhaps explaining why management increased its dividend by only 5% this year). Capital expenditures are surging as Alphabet builds out its artificial intelligence (AI) and cloud infrastructure. Sure, this has weighed on free cash flow in the short term. But investors should remember that these investments are aimed at capturing long-term growth opportunities. Making the case for Alphabet stock even stronger, the internet search and cloud computing company's growth story benefits from a diversified set of key revenue sources -- and they're all doing well. Alphabet's advertising business remains strong, YouTube continues to expand, and Google Cloud is gaining ground. Unlike Costco, valuation is a bright spot for Alphabet. Shares trade at about 21 times forward earnings -- a much lower multiple than tech peers like Microsoft and Meta and far below Costco. That's unusual for a company still posting strong double-digit growth in both revenue and profits. Revenue and operating income both increased 14% year over year in the company's second quarter of 2025. With earnings growth like this, Alphabet could ramp up its dividend in a big way down the road (though it might have to get through a period of high capital expenditures first as it invests aggressively in growth). A clear winner Costco and Alphabet may both look like low-yield stocks, but they represent two very different kinds of dividend investments. Costco is the steady option. It offers a safe payout, regular increases, and the occasional special dividend. But investors pay a steep price for that safety, which limits future returns. Alphabet, by contrast, has only just begun rewarding shareholders with dividends. The yield is tiny but could grow substantially over time. More importantly, the tech stock's valuation is much cheaper than Costco's. For investors willing to accept a small payout today in exchange for better long-term potential, Alphabet is the clear winner. Should you invest $1,000 in Alphabet right now? Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Costco Wholesale, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 2 Top Dividend Stocks Duke It Out. Which Is Better? was originally published by The Motley Fool
Yahoo
2 hours ago
- Yahoo
1 Beaten-Down Stock That Could Soar by the End of the Year
Key Points Viking's leading weight management candidate is being investigated in two formulations. The stock could soar later this year, provided the oral version aces phase 2 studies. Viking Therapeutics is somewhat risky, but it also has significant upside potential. 10 stocks we like better than Viking Therapeutics › Some smaller drugmakers choose to develop medicines for diseases for which there are no therapeutic options. This allows them to avoid direct competition from larger pharmaceutical companies. That's not exactly the strategy Viking Therapeutics (NASDAQ: VKTX) chose. The mid-cap biotech is working on weight loss therapies, an increasingly competitive market dominated by Eli Lilly (NYSE: LLY) and Novo Nordisk, as well as numerous other well-established players in the industry seeking to enter the space. Going up against these giants is no small challenge, but Viking is, so far, holding its own. And if it can play its cards right, its stock could soar by the end of the year and go on to generate strong returns from then on out. Here's more on Viking Therapeutics. Eli Lilly's setback creates an opportunity Viking Therapeutics' shares soared last year following the release of strong phase 2 data for its subcutaneous weight management candidate, VK2735. The stock has declined significantly since that milestone, although it's not due to anything Viking did wrong. Broader market volatility, combined with long-term shareholders taking some profits, is likely responsible for the stock's 40% drop over the trailing-12-month period. VK2735 is currently in phase 3 studies, but Viking is also developing an oral version of the medicine, which is in phase 2 clinical trials. There is a race to develop a highly effective oral GLP-1 anti-obesity therapy, since the current market leaders are administered via subcutaneous injection. If Viking Therapeutics' oral candidate can impress in mid-stage studies, the stock could soar. That's especially the case since Eli Lilly's investigational oral GLP-1 medicine, orforglipron, failed to perform as well as expected in a phase 3 study in obese or overweight patients who didn't have diabetes. Orforglipron led to a mean weight loss of 12.4% in a 72-week study, which wasn't as impressive as the market wanted. This result paled in comparison to Lilly's injectable Zepbound, which led to an average weight loss of 20.2% in a phase 3 study. Viking Therapeutics' shares jumped on the pharmaceutical giant's bad news, but there's plenty of upside left if its oral weight loss candidate meets Wall Street's expectations. It's best to start small Eli Lilly is perceived as the leader in the weight management market. The company's continued dominance in this field was likely somewhat baked into investor expectations, requiring it to deliver outstanding clinical trial results to justify its share price. Viking is a much smaller drugmaker than Lilly, so the market will likely have lower expectations for its data readouts for VK2735. Viking also has several other exciting candidates. The company is working on a drug called VK2809, a potential therapy for metabolic dysfunction-associated steatohepatitis (MASH), which produced solid results in phase 2 studies. There is a vast unmet need in MASH, considering several million people have the disease, yet the U.S. Food and Drug Administration has approved just a single medication for it. Elsewhere, Viking has a next-gen anti-obesity candidate that could soon start human clinical trials. The company has a lot going on, and if VK2735-related developments remain strong through the end of the year, the stock could soar. However, Viking -- like any clinical-stage biotech company -- is a somewhat risky bet. On the one hand, it has generated strong mid-stage data for two separate medicines that address high unmet needs. Its leading candidate, VK2735, has the potential to become a blockbuster; that's impressive. Even so, the stock will plummet if VK2735 encounters clinical setbacks. So, should you buy shares? In my view, it depends on your level of risk tolerance. Risk-averse investors should look elsewhere. If you're comfortable with a bit of volatility, you should seriously consider the stock; however, it would be wise to start by initiating a small position. If the data from the ongoing phase 2 study for oral VK2735 is good, it might be worth adding even more shares thereafter. Should you buy stock in Viking Therapeutics right now? Before you buy stock in Viking Therapeutics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Viking Therapeutics wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Prosper Junior Bakiny has positions in Eli Lilly, Novo Nordisk, and Viking Therapeutics. The Motley Fool recommends Novo Nordisk and Viking Therapeutics. The Motley Fool has a disclosure policy. 1 Beaten-Down Stock That Could Soar by the End of the Year was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
