FSD Pharma Breached NDA with GBB After GBB Terminates Acquisition Discussions
McapMediaWire — GBB Drink Lab (“GBB” or the “Company”), a maker of the world’s first formulated drink that aids in rapid blood alcohol detoxification has issued a cease-and-desist demand to FSD Pharma (NASDAQ: HUGE) (“FSD”) a publicly traded biotechnology company that operates in the pharmaceutical research and development business., April 17, 2023 —
GBB has a patented formula that accelerates the process of converting alcohol to sugar in the body. By enhancing the metabolic pathways that facilitate this process, the formula can help the body clear alcohol much faster than normal. The Company has been working on a proprietary drink for several years using its patented formula.
FSD Pharma entered into a binding Non-Disclosure Agreement (NDA) with GBB. The companies had ongoing discussions about an acquisition for many months that GBB has since terminated.
Mr. John Gulyas, Co-Founder of GBB Drink Lab, met with FSD and its principals over many months and shared proprietary information with the company that included without limitation, information created and developed by the company relating to composition, formulation, and methods of using the composition and formulations for reducing the effects associated with alcohol consumption in drink and other edible and nonedible forms.
Per the cease and desist letter sent to FSD, “Not only has FSD and its principals committed fraud by way of wrongfully inducing GBB Drink Lab into providing the Product and other confidential information, but FSD and its principals have also committed multiple breaches of the Agreement, including, but not limited to: (i) reverse-engineering the Product and/or other confidential information provided, in violation of Section 3 of the Agreement; and/or (ii) wrongfully asserting dominion over the Product and/or other confidential information (and all intellectual property rights pertaining thereto) by using such information to launch FSD’s recently announced Programm”
Mr. Jarrett Boon, Co-Founder and CEO of GBB Drink Lab, states that “FSD Pharma has violated the NDA, developed a product using the Company’s formula, trade secrets, methods, and has used the stolen information to gain investors for its own stock. GBB is aggressively taking legal action against the theft of its confidential information and has demanded that FSD halt its product from being launched”.
Further evidence is supported that FSD Pharma has publicly announced the launch of a new research and development program targeting unmet medical needs for alcohol misuse. FSD Pharma has also announced the addition of Shark Tank investor and pitchman Kevin Harrington, and former Celsius (NASDAQ: CELH) CEO Gerry David to its Advisory Board to help commercialize its efforts.
GBB has demanded that “FSD immediately cease and desist the program, including, but not limited to, use of all confidential and/or proprietary information provided by GBB Drink Lab relating thereto.”
About GBB Drink Lab
GBB Drink Lab started with a vision of making a positive impact by offering practical, evidence-based solution to reducing Blood Alcohol Content. The company’s product has been meticulously crafted to optimize your ability to sober up thus enabling you to escape an inebriated state. GBB Drink Lab leadership team includes accomplished serial entrepreneurs, a former senior executive from one of the world’s largest beverage companies, and an industry-leading expert in flavoring science and product formulation.
Jarrett Boon, Co-Founder, CEO, GBB Drink Lab, Inc