FSD Pharma Enters into Supply Agreement with Canntab Therapeutics and World Class Extractions on Organic Hemp Deal

– FSD enters into 3-way supply agreement to purchase up to 1,000 kg of
2018 hemp crop –

TORONTO–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/FSDDF?src=hash” target=”_blank”gt;#FSDDFlt;/agt;–FSD Pharma Inc. (CSE:HUGE) (OTCQB:FSDDF) (FRA:0K9) (“FSD”), a licensed
producer under the Cannabis Act, announced today that it has
entered into a supply agreement (the “Agreement”) with Canntab
Therapeutics Ltd. (“Canntab”) and World Class Extractions Inc. (“World
Class”) (the “Purchasers”) to purchase hemp flower from Thomas Elcome
(the “Supplier”). Pursuant to the agreement, the Purchasers have agreed
to buy approximately 1,000 kg of the Supplier’s 2018 hemp crop at a
purchase price of $100.00 per kg per 1% of CBD extracted from the flower.

Working alongside Canntab and World Class, FSD will extract CBD from the
organic hemp obtained in the purchase order. The Purchasers will process
the hemp flower into gel capsules and tablets at the FSD facility in
Cobourg, Ontario. This facility is currently being transformed into a
large hydroponic indoor cannabis production and processing facility,
with multiple business units co-supporting each other and operating
under a single roof to exploit economies of scale and operational
efficiencies.

The Purchasers are in the process of executing a second agreement with
the Supplier for the right and option to purchase the Supplier’s entire
2019 hemp crop and beyond.

“We look forward to working with Canntab, World Class and Mr. Elcome to
obtain and produce high-quality hemp and hemp derived products in this
burgeoning market where the opportunity is sizable across North
America,” said Dr Raza Bokhari, Executive Co-chairman & Interim CEO.
“FSD recognizes the significant value and revenue potential that hemp
holds in the cannabis industry and is confident in the excellence of Mr.
Elcome’s product and the abilities of Canntab and World Class to
produce.”

“This is an exciting industry where we see tremendous growth potential
for our company and is a great opportunity for Canntab to begin
processing at the FSD Facility. Our collaboration and profit sharing
agreement signed in September provides us with up to 10,000 square feet
of space at the facility to build, install and manufacture a suite of
novel cannabis oral dose delivery platforms, including gel capsules and
tablets, and other types of cannabis-based products, including sleep
aids and pain relievers. This agreement allows our three complimentary
companies to realize a common goal of creating value for our
shareholders,” stated Mr. Jeffrey Renwick, Chief Executive Officer of
Canntab.

Michael McCombie, CEO of World Class, added, “World Class expects to
begin installing our patent-pending proprietary extraction technology at
the FSD’s Cobourg facility following our imminent listing on the CSE.
This agreement will provide us with significant raw hemp supply for
processing CBD enriched oil and extracts, which will be available for
sale by World Class and/or conversion to gel capsules and tablets by
Canntab.”

“FSD, Canntab and World Class are ideal companies to make the most of
the 1,000 kg of organic hemp crop produced at my farm in Rockwood,
Ontario,” said Mr. Thomas Elcome, President of 10975443 Canada Inc.
“Preliminary testing has shown an average of 3% CBD and I am confident
that we will be able to extract a very high quality and very valuable
full spectrum CBD, and that this will be the beginning of a long and
mutually beneficial relationship.”

About FSD Pharma

FSD Pharma is focused on the development of the highest quality indoor
grown, pharmaceutical grade cannabis and on the research and development
of novel cannabinoid-based treatments for several central nervous system
disorders, including chronic pain, fibromyalgia and irritable bowel
syndrome. The Company has 25,000 square feet available for production at
its Ontario facility with an additional 220,000 square feet currently in
development (with an estimated cost of $250 per square foot to be
completed in 2019).

FSD facilities sit on 70 acres of land with 40 acres primed for
development and an expansion capability of up to 3,896,000 square feet.

FSD’s wholly-owned subsidiary, FV Pharma, is a licensed producer under
the Cannabis Act and Regulations, having received its cultivation
license on October 13, 2017. FV Pharma’s vision is to transform its
current headquarters in a Kraft plant in Cobourg, Ontario into the
largest hydroponic indoor grow facility in the world. FV Pharma intends
to cover all aspects of this exciting new industry, including
cultivation, legal, processing, manufacturing, extracts and research and
development.

About Canntab

Canntab Therapeutics is a Canadian cannabis oral dosage formulation
company based in Markham, Ont., engaged in the research and development
of advanced pharmaceutical-grade formulations of cannabinoids. Canntab
has developed patent-pending technology to deliver standardized medical
cannabis extract from selective strains in a variety of
extended-release/sustained-release pharmaceutical dosages for
therapeutic use. In doing so, Canntab has developed a suite of precision
oral dose products that are unavailable elsewhere in the marketplace.
Canntab’s primary focus is on providing cannabis-based products to
medical professionals that can be used to deliver therapeutic treatments
to their patients. Canntab trades on the Canadian Securities Exchange
under the symbol PILL.

About World Class

World Class was incorporated under the Business Corporations Act
(Ontario) on January 25, 2018 as a private company. World Class has
developed a unique extraction process to produce quality, potent
cannabis extracts. The extraction technology (the “WCE Technology”) uses
ultrasound to effectively produce extracts from cannabis and hemp and
isolate essential compounds found in plant material. The WCE Technology
has a number of advantages over conventional extraction methods,
including the ability to: (i) produce higher concentrated compounds;
(ii) process larger volumes of cannabis or hemp; (iii) utilize undried
cannabis or hemp in the process; (iv) utilize all parts of the cannabis
or hemp plants, and, (v) reduce production time.

Forward-Looking Information

Neither the Canadian Securities Exchange nor its regulation services
provider accept responsibility for the adequacy or accuracy of this
release.

Certain statements contained in this press release constitute
forward-looking information. These statements relate to future events or
future performance. The use of any of the words “could”, “intend”,
“expect”, “believe”, “will”, “projected”, “estimated” and similar
expressions and statements relating to matters that are not historical
facts are intended to identify forward-looking information and are based
on the company’s current belief or assumptions as to the outcome and
timing of such future events. Actual future results may differ
materially. In particular, this release contains forward-looking
information relating to the development of the company’s indoor cannabis
facility and its business goals and objectives. The forward-looking
information contained in this press release is made as of the date
hereof, and the company is not obligated to update or revise any
forward-looking information, whether as a result of new information,
future events or otherwise, except as required by applicable securities
laws. Because of the risks, uncertainties and assumptions contained
herein, investors should not place undue reliance on forward
looking-information. The foregoing statements expressly qualify any
forward-looking information contained herein.

Contacts

Zeeshan Saeed, President, Founder and Director, FSD Pharma Inc.
Email:zeeshan@fsdpharma.com
Telephone:
(416) 854-8884

Investor Relations
Email: IR@fsdpharma.com
Website: www.fsdpharma.com

Media Relations
Nic Johnson / Caroline Cunningham
Email:
Nic.Johnson@russopartnersllc.com
/ Caroline.Cunningham@russopartnersllc.com
Tel:
(212) 845-4242 / (212) 845-4292