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Celly Nutrition has to pay 7% royalty on sales of alcohol detox product unbuzzd to Quantum until payments total $250 million and 3% royalty afterwards.
Nasdaq-listed shares of Quantum BioPharma (QNTM) surged 15% on Wednesday after the company said its licensee, Celly Nutrition Corporation, has released a new format of its alcohol detox product that could be sold in convenience, liquor, and drug stores across the United States.
Celly Nutrition is behind unbuzzd, a beverage that restores mental clarity and reduces symptoms of intoxication and hangovers. It has now released a new ready-to-mix powder stock version of the product, which is sold in packs of three, eight, or 18.
Quantum BioPharma invented unbuzzd and spun out its over-the-counter version to Celly Nutrition.
As part of the agreement between the two companies, Celly Nutrition has to pay 7% royalty on sales of unbuzzd to Quantum until payments total $250 million.
Once $250 million is reached, the royalty drops to 3% in perpetuity, the company said.
Quantum Biopharma has a 25.71% stake in Celly Nutrition as of June 30.
John Duffy, CEO of Celly Nutrition, said that distribution of unbuzzd at popular brick and mortar stores is expected to be a “key growth driver” for the product.
“The 8-pack display box enhances unbuzzd’s package evolution, meeting various consumer needs and accelerating retail availability across the United States. This new format aims to boost sales and profits for retailers in the estimated $2.1 billion global hangover cure products market,” Duffy added.
The company said that the 8-pack box of the product is also available for purchase on Amazon and on unbuzzd’s website.
On Stocktwits, retail investor sentiment surrounding Quantum BioPharma dipped from ‘bullish’ to ‘neutral’ territory while message volume dropped from ‘extremely high’ to ‘low’ over the past 24 hours.
Quantum BioPharma shares have gained over 65% this year but fell over 80% in the past 12 months.
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