Quantum BioPharma Prevails in Legal Battle with Former CEO, Secures Over C$3 Million in Costs

The Court of Appeal for Ontario has fully dismissed a reconsideration motion filed by Dr. Raza Bokhari, former CEO of Quantum BioPharma Ltd., bringing closure to a protracted legal dispute that began with Bokhari's termination for cause in 2021. This legal victory represents the latest development in a series of unsuccessful challenges by Bokhari, who initially lost an arbitration claiming wrongful dismissal, resulting in a cost award of approximately C$2.81 million plus interest against him. Subsequent court-awarded costs have now escalated the total amount due to Quantum BioPharma to over C$3 million, demonstrating the comprehensive nature of the company's legal success.

Quantum BioPharma has taken proactive measures to secure these financial awards, initiating U.S. collection proceedings that resulted in a favorable judgment from the U.S. District Court for the Eastern District of Pennsylvania. The ongoing appeal remains stayed, supported by a supersedeas bond exceeding $2.8 million, providing additional financial security for the company during the appellate process. This legal resolution underscores Quantum BioPharma's strategic approach to protecting its corporate interests and maintaining robust governance standards while navigating complex cross-border litigation.

Beyond this significant legal matter, Quantum BioPharma continues to advance its core mission of developing innovative biotech solutions across multiple therapeutic areas. The company maintains a diverse portfolio targeting neurodegenerative, metabolic, and alcohol misuse disorders, reflecting its commitment to addressing significant unmet medical needs. Through its subsidiary Lucid Psycheceuticals Inc., the company is developing Lucid-MS, a promising compound designed to prevent and reverse myelin degradation in preclinical models, representing a potential breakthrough in multiple sclerosis treatment.

The company has also demonstrated strategic investment acumen through its involvement with Celly Nutrition Corp., where Quantum BioPharma retains a 25.71% ownership stake and has secured a royalty agreement for its UNBUZZD product. This diversified approach reflects Quantum BioPharma's balanced commitment to scientific innovation and strategic financial management, positioning the company for sustainable growth across both therapeutic development and strategic investments. The resolution of the legal dispute with its former CEO allows the company to focus fully on these core business objectives without the distraction of ongoing litigation.