Quantum BioPharma Completes Warrant Expiration, Confirms CVR Record Date for Potential Litigation Payout

Quantum BioPharma Ltd. has reached a significant milestone in its corporate restructuring with the expiration of the final tranche of warrants originally issued to hedge funds and investment funds as part of a 2020 financing arrangement. The warrants, which totaled 53,147 after accounting for reverse stock splits from an original 3,454,543 warrants, expired at 5 p.m. Eastern Time, marking the completion of this financial instrument phase for the company.

Simultaneously, the biopharmaceutical company reaffirmed October 27, 2025 as the record date for the distribution of contingent value rights to Class B Subordinate Voting Shareholders. These CVRs will be distributed on a one-for-one basis, providing shareholders with potential financial benefits tied to the outcome of Quantum BioPharma's substantial $700 million litigation against CIBC World Markets, RBC Dominion Securities, and other defendants.

The contingent value rights represent a significant potential value transfer mechanism for shareholders, as they entitle holders to a pro rata share of 10% to 50% of any net proceeds recovered from the litigation. This structure aligns shareholder interests with the company's legal efforts and provides a transparent mechanism for distributing potential litigation recoveries directly to investors. The full details of this arrangement are available in the company's official press release at https://ibn.fm/g52XC.

This development is particularly important for investors and market observers as it represents the culmination of financial restructuring efforts that began with the 2020 financing round. The warrant expiration removes potential dilution concerns while the CVR confirmation provides clarity on how shareholders might benefit from the ongoing litigation. The $700 million lawsuit against major financial institutions represents a substantial potential recovery that could significantly impact Quantum BioPharma's financial position and shareholder value.

The timing of these announcements comes as Quantum BioPharma continues to advance its biopharmaceutical pipeline through its subsidiary Lucid Psycheceuticals Inc., which is developing Lucid-MS, a patented compound targeting myelin degradation in multiple sclerosis. The company's strategic positioning across both pharmaceutical development and potential financial recoveries creates a unique investment profile that combines traditional biotech risk with potential litigation-driven returns.

For current shareholders, the CVR distribution mechanism provides a direct pathway to participate in potential litigation success without requiring additional investment. The structure ensures that shareholders of record as of October 27, 2025 will maintain their entitlement to potential proceeds even if they sell their shares before the litigation concludes. This arrangement represents an innovative approach to shareholder value creation in the biopharmaceutical sector, where litigation outcomes can sometimes provide substantial financial windfalls independent of traditional drug development timelines.

The market implications extend beyond Quantum BioPharma's immediate shareholder base, as successful litigation recoveries in the biopharmaceutical sector can set precedents for how companies structure financial instruments and shareholder compensation in complex legal scenarios. The clarity provided by these announcements helps establish transparent expectations for how potential litigation proceeds might flow to investors in similar situations across the industry.