- Quantum BioPharma (QNTM, Financial) plans to issue special Contingent Value Rights (CVRs) to Class B Subordinate Voting shareholders.
- Shareholders could receive between 10% to 50% of net proceeds from ongoing litigation against major banks.
- The CVRs are non-transferable, not listed on any exchange, and carry no interest or voting rights.
Quantum BioPharma (QNTM) has announced its intention to declare a special dividend in the form of Contingent Value Rights (CVRs) to holders of its Class B Subordinate Voting Shares. The CVRs will be issued on a 1:1 basis, granting shareholders the right to receive a portion of the net proceeds recovered from the company’s ongoing litigation against several major banks, including CIBC World Markets and RBC Dominion Securities.
The litigation seeks damages exceeding $700 million due to alleged stock price manipulation. Depending on the outcome, CVR holders could receive between 10% and 50% of any net proceeds resulting from a settlement or judgment. While the exact payout percentage and record date have yet to be finalized, Quantum BioPharma assures that it will provide further updates as necessary.
However, the CVRs come with certain restrictions: they will not be listed on any exchange, cannot be transferred or assigned, will not accrue interest, and carry no voting rights. Redemption will be possible only if the litigation yields positive financial results for the company.
According to Zeeshan Saeed, CEO of Quantum BioPharma, this move underscores the company's commitment to ensuring shareholders benefit directly from the litigation's potential success. Nonetheless, the issuance of CVRs is subject to legal and regulatory approvals, with no guarantee of litigation success or any resulting payments.
Quantum BioPharma continues to focus on developing innovative biotech solutions and maintains strategic investments across diverse sectors.
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