Quantum BioPharma Sets Record Date for Litigation-Linked CVR Distribution

Quantum BioPharma Ltd. (NASDAQ: QNTM) (CSE: QNTM) has established October 27, 2025 as the record date for the distribution of contingent value rights to holders of its Class B Subordinate Voting Shares. The distribution will occur on a one-for-one basis, meaning shareholders will receive one CVR for each share they hold as of the record date. This strategic move represents a significant development in how the company is approaching its ongoing litigation while providing potential value to current investors.

Each CVR entitles holders to a pro rata portion of between 10% and 50% of any net proceeds ultimately recovered from the company's ongoing litigation against CIBC World Markets, RBC Dominion Securities, and others. The litigation seeks damages exceeding USD $700 million, representing substantial potential recovery for both the company and its shareholders. The percentage range indicates that the company has structured the CVRs to provide meaningful participation in any successful outcome while retaining a significant portion for corporate purposes.

The CVRs carry specific characteristics that investors should understand. They are non-transferable, meaning shareholders cannot sell or transfer these rights to other parties. Additionally, the CVRs carry no interest or voting rights, functioning purely as financial instruments tied to the litigation outcome. The rights will only be redeemable for cash if Qualifying Net Proceeds are received through either settlement or a final, non-appealable judgment, ensuring that payment occurs only after the legal process concludes definitively.

This distribution mechanism represents an innovative approach to shareholder value creation in the biopharmaceutical sector. By directly linking potential litigation recoveries to shareholder compensation, Quantum BioPharma demonstrates commitment to aligning investor interests with corporate legal strategies. The structure allows current shareholders to participate directly in what could be a substantial financial recovery without requiring additional investment.

The litigation itself targets major financial institutions, suggesting claims related to financial services, potentially involving financing arrangements, advisory services, or other capital markets activities. The substantial damages sought exceeding $700 million indicates the company believes it has strong legal grounds for recovery. For investors, this represents potential upside beyond the company's core biopharmaceutical operations.

Quantum BioPharma maintains its primary focus on developing treatments for challenging neurodegenerative and metabolic disorders and alcohol misuse disorders. Through its wholly owned subsidiary, Lucid Psycheceuticals Inc., the company is advancing Lucid-MS, a patented new chemical entity shown to prevent and reverse myelin degradation in preclinical models. Myelin degradation represents the underlying mechanism of multiple sclerosis, positioning Lucid-MS as a potentially significant therapeutic advancement.

The company's broader portfolio includes strategic investments through its wholly owned subsidiary, FSD Strategic Investments Inc., which represents loans secured by residential or commercial property. This diversified approach to value creation, combined with the litigation-linked CVR distribution, demonstrates the company's multifaceted strategy for building shareholder value across different asset classes and opportunity types.

For additional information about Quantum BioPharma, investors can access the company's newsroom at https://ibn.fm/QNTM. The full press release detailing the CVR distribution is available at https://ibn.fm/P9Wrt.