Quantum BioPharma Secures Legal Victory in Former CEO Dispute, Strengthening Corporate Governance

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 that resulted in a cost award of approximately C$2.81 million plus interest to Quantum BioPharma. Subsequent court-awarded costs have now escalated the total amount due to over C$3 million, significantly impacting the financial resolution of this corporate governance matter.

Quantum BioPharma has demonstrated proactive measures in enforcing these legal decisions by initiating U.S. collection proceedings that secured 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 financial security for the company during the legal process. This comprehensive legal resolution underscores Quantum BioPharma's strategic approach to protecting its corporate interests and maintaining robust governance standards throughout challenging executive transitions.

Beyond this significant legal matter, Quantum BioPharma continues to advance its core mission of developing innovative biotech solutions through its diversified portfolio targeting neurodegenerative, metabolic, and alcohol misuse disorders. The company's subsidiary Lucid Psycheceuticals Inc. is developing Lucid-MS, a promising compound designed to prevent and reverse myelin degradation in preclinical models, representing potential breakthroughs in neurological treatment. Quantum BioPharma has also demonstrated strategic investment acumen through its involvement with Celly Nutrition Corp., where it maintains a 25.71% ownership stake and secured a royalty agreement for its UNBUZZD product, reflecting the company's balanced approach to scientific innovation and financial management.