Quantum Biopharma warrants issued to funds expire

Executive Summary

• Quantum Biopharma Ltd. announces the expiration of the final tranche of warrants (53,147 warrants) originally issued to hedge funds and investment funds in October 2020, following a reverse stock split.
• The company reiterates October 27, 2025, as the record date for the distribution of Contingent Value Rights (CVRs) to holders of Class B subordinate voting shares on a one-for-one basis.
• These CVRs are linked to an ongoing legal action against CIBC World Markets, RBC Dominion Securities, and others for stock price manipulation and spoofing, seeking damages in excess of $700 million (U.S.).

Key Details

• Warrant Expiration:
  • 53,147 warrants expired at 5 p.m. EST.
  • These warrants were originally 3,454,543 warrants issued prior to a reverse stock split (ratio of one for 65).
  • All warrants were held by hedge funds and investment funds as part of a financing completed on October 20, 2020.
  • This represents the very last tranche of warrants issued to hedge funds and investment funds.
• Contingent Value Rights (CVRs) Distribution:
  • Record Date: October 27, 2025.
  • Eligibility: Holders of Class B subordinate voting shares.
  • Ratio: One-for-one distribution.
  • Nature of CVRs: Non-transferable, non-assignable, no voting rights, no interest.
  • Redemption: Redeemable only for cash upon receipt of qualifying net proceeds from the litigation.
  • Payout Structure: Holders are entitled to a pro rata portion of a minimum of 10% and up to 50% of the net proceeds recovered from the litigation.
  • Litigation Context: The company is pursuing legal action against CIBC World Markets, RBC Dominion Securities, and others for stock price manipulation and spoofing, seeking damages in excess of $700 million (U.S.).
  • Payment Conditions: No payment will occur unless and until the company receives net proceeds from a settlement or final, non-appealable judgment. The distribution date is contingent upon the receipt of these proceeds.
• Company Background (from "About" section, retained for context on assets):
  • Focuses on neurodegenerative, metabolic, and alcohol misuse disorders.
  • Lead compound: Lucid-MS (patented new chemical entity for multiple sclerosis).
  • Ownership of 20.10% in Unbuzzd Wellness Inc. (formerly Celly Nutrition Corp.), with a royalty agreement of 7% of sales until $250 million is reached, then dropping to 3% in perpetuity.