Auxly Archives - Green Market Report

Debra BorchardtMay 16, 2022
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Auxly Cannabis Group Inc. (TSX: XLY) (OTCQX: CBWTF) released its financial results for the three months ended March 31, 2022. Auxly reported net revenues rose 147% to $22.6 million versus $9.2 million during the same period in 2021. Revenues fell sequentially from the fourth quarter’s revenue of $29 million. Auxly admitted it had lower winter yields at Auxly Leamington and hardware and packaging shortages due to supply chain disruptions. The company said believes that those challenges are largely behind it, and is very encouraged by yield and overall product quality improvements that it has seen at Auxly Leamington, which it believes will better equip Auxly to meet the demand for its flower and pre-roll products.

Net losses rose to $39 million for the quarter versus last year’s net loss of $10 million for the same time period. The earnings per share were ($0.05) versus last year’s ($0.01).

Revenue in the first quarter of 2022 was approximately 61% in Cannabis 2.0 Product sales, with the remainder from Cannabis 1.0 Product sales. Auxly said that revenues improved as a result of its expansion into Cannabis 1.0 Products and continued leadership in Cannabis 2.0 Products. Consistent with prior periods, as the Company does not participate in the Quebec market, approximately 85% of cannabis sales during the first quarter of 2022originated from sales to British ColumbiaAlberta and Ontario.

Hugo Alves, CEO of Auxly, said, “Amid intense and growing competition and seasonal buying trends in the Canadian cannabis market, Auxly continued to see strength in sales, increasing revenues 147% year-over-year. Though this quarter presented some ongoing supply chain and operational challenges preventing us from meeting consumer demands for our branded cannabis products, we believe we have taken the necessary steps to correct these issues for the coming quarters, allowing us to increase fill rates and continue with our exciting new product launches throughout the year. We continue to lead the market in cannabis 2.0 products and remain focused on building to leadership in dried flower and pre-rolls and improving our business to achieve our goal of reaching adjusted EBITDA profitability.”

Losses Increase

The company addressed the increase in losses saying that there was an impairment of long-term assets of $12.9 million and intangible assets and goodwill of $10.8 million respectively in the first quarter of 2022 related to the closure of the Auxly Annapolis and Auxly Annapolis OG facilities where the carrying value exceeds the fair value less cost to sell. Gains and losses on settlement of assets and liabilities and other expenses in the prior-year quarter were primarily associated with a gain on the settlement of a $5.8 million liability associated with a non-monetary product exchange with another licensed producer. The share of loss on investment in joint venture of $0.5 million represents the company’s proportionate share of Auxly Leamington’s earnings prior to its acquisition in November 2021, which results are presently consolidated into the Company’s financial statements.

Outlook

Auxly said it is confident in its second-quarter sales outlook and in its ability to achieve Adjusted EBITDA profitability in 2022. The company, however, provided no numbers for its sales expectations.


StaffMarch 31, 2022
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Auxly Cannabis Group Inc. (TSX ‐ XLY) (OTCQX: CBWTF)  released its fourth-quarter and full-year 2021 financial results with revenue rising 20% sequentially to $29.3 million in the quarter. Auxly also reported that the net losses for the fourth quarter were $18.3 million, which rose from the previous quarter’s net loss of $13.5 million.

For the full-year net revenues rose 79% to $83.8 million versus $46.7 million during 2020. Auxly said revenue was comprised of approximately 69% in Cannabis 2.0 Product sales, with the remainder from Cannabis 1.0 Product sales. Net revenues improved as a result of its expansion into Cannabis 1.0 Products and continued leadership in Cannabis 2.0 Products. Consistent with prior periods, as the company does not participate in the Quebec market, approximately 85% of cannabis sales throughout 2021 originated from sales to British Columbia, Alberta and Ontario.

Net losses for the year were $33.7 million representing a net loss of $0.06 per share on a basic and diluted basis. The company said the improvement of approximately $51.7 million relative to the same period in 2020 was primarily a result of net income of $12.2 million related to the sale of KGK, recognition of a gain from the Imperial Brands Debenture amendments, improvements in continuing operating gross profits and income tax recoveries, partially offset by an impairment charge related to the Curative recoverable amount, losses on the investment in Auxly Leamington while it was recorded as a joint venture and higher interest and depreciation and amortization expenses.

“Auxly exited 2021 as the 5th largest LP in Canada by share of market,” said CEO Hugo Alves. “Over the course of 2021 we were able to successfully extend our brands into Cannabis 1.0 formats, significantly enhance our cultivation capabilities and solidify our position within the top 10 licensed producers in both dried flower and pre-roll sales; all while maintaining our #1 overall position in the Cannabis 2.0 product segment and a dominant 23% share of market in vapes. We successfully launched 51 exciting new SKUs over the course of 2021, including 10 first-to-market innovations, and we will continue to work relentlessly to keep you smiling in 2022 with 60 new product innovations planned for release over the course of the year. I am proud of the dedication that our team has shown – at every site and every facility – in pulling together as one organization and achieving these results and I am excited to carry the momentum that we’ve earned over the course of 2021 into the new year and continue to win with our customers and consumers.”

The company noted that cash flows and financing of the business improved dramatically with total net cash used of $5.9 million in 2021 as compared to a use of $22.9 million in 2020.

2022 Outlook

Auxly said its key priority in 2022 is to achieve Adjusted EBITDA profitability by continuing to grow top-line revenue while enhancing gross profit margins through leveraging the increasing flower output from its Auxly Leamington facility, focused and differentiated brand and product offerings, increased depth and breadth of distribution, and cost optimization through investments in automation to increase production capabilities and efficiency and continuous improvement initiatives.


StaffAugust 16, 2021
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Auxly Cannabis Group Inc. (TSX.V – XLY) (OTCQX: CBWTF) released its financial results for the three ending June 30, 2021, with total revenue of $29.5 million versus last year’s $8.3 million. Auxly’s total net revenues from the sale of adult-use cannabis in Canada were $20.9 million for the quarter, more than double the same period in 2020. The net loss from continuing operations was $3.6 million versus last year’s $30 million. The adjusted EBITDA improved to a negative $3.3 million versus last year’s negative $10.4 million.

Hugo Alves, CEO of Auxly, commented: “We are thrilled to report a record quarter for Auxly where we saw significant growth in our net revenue, adjusted EBITDA and our share of the recreational cannabis market. We continued to hold the #1 spot in Cannabis 2.0 Product sales nationally, through our leadership in the vapour segment and consumer-driven innovations in new product categories such as concentrates. Our strong momentum in retail sales and the increasing prevalence of our brands within the segments that they compete, are the result of our focused strategy and the investments we’ve made in the human resources, assets and capabilities that we believe are needed to win in the consumer market and which differentiate Auxly from its competitors. We look forward to launching new and exciting products for consumers to enjoy as we continue to execute against our objectives in 2021.”

Auxly said that net revenues improved during the second quarter of 2021 by $14.0 million over the same period of 2020 and by $11.7 million over the first quarter of 2021 primarily due to its increased retail cannabis sales nationally and improvements in the company’s provincial customers’ inventory purchases following the prior quarter pullback. Consistent with prior periods, as the company does not participate in the Quebec market, approximately 85% of cannabis sales during the second quarter of 2021 originated from sales to British Columbia, Alberta, and Ontario.

Net income was $8.7 million for the quarter which represented a net income of $0.01 per share on a basic and diluted basis. Auxly said that the improvement in net income and loss positions was a result of net income of $12.3 million related to the sale of KGK, recognition of a gain from the Imperial Brands Debenture Amendments, improvements in continuing operating gross profits and income tax recoveries, partially offset by an impairment charge related to the Curative sale.

Auxly managed to cut the company’s expenses. Selling, general and administrative expenses were $12.1 million during the second quarter and $21.3 million years to date 2021, a decrease of $1.5 million and $5.1 million as compared to the same periods in 2020.


StaffJuly 7, 2021
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Auxly Cannabis Group Inc. (TSX – XLY) (OTCQX: CBWTF) has pushed out the maturity date for its $123 million debenture by 24 months from September 25, 2022 to September 25. The interest payments under the Debenture, accrues at a rate of 4% per year and is payable annually, will remain unchanged but will be payable on maturity of the Debenture.

The company also amended the investor rights agreement dated September 25, 2019 with its strategic partner, Imperial Brands PLC. Imperial has the right, on an annual basis, to convert any or all of the accrued and unpaid interest on the Debenture then outstanding into common shares at a conversion price equal to the five-day volume-weighted average trading price of the shares on the date that Interest Conversion Election is made.

Auxly also said that it has completed the sale of its interest in 2368523 Ontario Limited (d/b/a Curative Cannabis) to a private purchaser for total proceeds of $6 million. Auxly had acquired Curative Cannabis through a foreclosure order issued on November 27, 2019, which assets included a cannabis cultivation facility located in Chatham-Kent, Ontario. The facility has remained non-operational since the foreclosure and while exploring all possible options with respect to the use, commercialization and/or sale of the asset the company determined such asset was not essential to its operations and strategy. The disposition of this non-core asset allows Auxly to strengthen its financial position with non-dilutive capital that it can deploy into its core business.

Sundial

Sundial Growers Inc. (NASDAQ: SNDL) announced that it has increased its commitment to SunStream Bancorp Inc. to $538 million from its previously announced commitment of $188 million. All amounts are in Canadian dollars unless otherwise stated. SunStream is a joint venture between Sundial and the SAF Group that leverages a strategic financial and operational partnership to target asymmetrically enhanced risk-return opportunities in the cannabis industry to provide exposure to a portfolio of attractive debt, equity, and hybrid investments.

In May, Sundial reported a net loss of $134.4 million as a result of $130.0 million of non-cash amounts reflecting the impact of share price volatility on the accounting valuation of derivative warrants. The net revenue from branded cannabis products declined in the first quarter to $7.2 million from $11.4 million in the previous quarter. Sales were impacted by provincial boards reducing inventory levels, retail market conditions, and continued price compression across the industry and Sundial’s portfolio. These market dynamics impacted all of Sundial’s formats and brands in the first quarter. Revenue from licensed product sales was $2.7 million compared to $2.4 million in the previous quarter.


Debra BorchardtApril 26, 2021
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Auxly Cannabis Group Inc. (OTCQX: CBWTF) released its fourth-quarter and full-year 2020 financial results. Auxly reported total revenues for the fourth quarter were $18.8 million versus $3.1 million for the same time period in 2019. Earnings per share were ($0.04) for the quarter versus last year’s ($0.02) for the same time period. All amounts are Canadian dollars.

For the full year of 2020, revenue jumped 508% to $50.7 million versus 2019’s $8.3 million. For the year revenues were $57.2 million as compared to $2.3 million in the same period in 2019, but excise taxes cut that figure by $10 million.

The net losses for the year improved by 17% coming in at $85.4 million versus 2019’s net loss of $102 million. The company said that the improvement of $21.2 million in 2020 was primarily the result of a gross profit increase of $14.8 million, total expenses consistent with the prior year amounts, lower impairment losses and total other losses of $16.9 million, partially offset by lower income tax recoveries of $10.3 million. Net losses of $108.6 million in 2019 were primarily driven by an increase in total other losses and depreciation and amortization expenses, partially offset by income tax recoveries. For 2020, SG&A expenses were $48.9 million, a decrease of $1.4 million from 2019.

Net cannabis revenues of $46.6 million during the period were approximately 80% Cannabis 2.0 Products, with the remainder from Cannabis 1.0 Products, and represented a significant increase over 2019 where Cannabis 2.0 sales began in December. the company said that during the year approximately 75% of cannabis net revenues originated from sales to British Columbia, Alberta, and Ontario led by strong market shares in vapes and edibles, resulting in Auxly being the top LP for Cannabis 2.0 sales nationally. The sale of Cannabis 1.0 Products was led by the launch of Kolab Project flower and pre-rolls and Robinsons dried flower in the summer of 2020.

“Auxly saw tremendous growth in its first full year of commercial operations, with 508% growth in our net revenue year over year,” said Hugo Alves, CEO of Auxly. “As one of the first LPs to offer Cannabis 2.0 products upon legalization and one of the largest, most widely distributed 2.0 product portfolios on the market, we have successfully secured our position as one of the top cannabis companies in Canada.”

Sunens Update

Auxly gave an update on its organic joint venture with Sunen Farms Inc. On April 16, 2021, the company said that Sunens received a notice of default from the Bank of Montreal in its capacity as a lender, administrative agent, and syndication agent under the Sunens’ credit agreement with respect to, among other things, Sunens’ failure to satisfy recently established revenue milestones for the first quarter of 2021. As part of such financing provided by the syndicate, Auxly has guaranteed payments up to $33 million in the event of default.

Although the lenders have reserved their rights under the credit agreement, they are continuing to advance funding which Sunens will use to fund its day‐to‐day operations. Sunens commenced cultivation within the licensed area upon receiving its license in June 2020, and during the first quarter of 2021 has sold products to Auxly and other licensed producers. Sunens may require additional funding for working capital until production and revenue from sales reach expected levels.

Auxly shares have traded within a range of $0.28 and $0.30 over he past 30 days.


Debra BorchardtJanuary 21, 2021
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Auxly Cannabis Group Inc. (OTCQX: CBWTF) has raised $15 million with a deal in which ATB Capital Markets Inc. and Cantor Fitzgerald Canada Corporation, as co-lead underwriters and joint book-runners, together with a syndicate of underwriters will buy 40,550,000 Units of the Company at a price per unit of $0.37. The stock was lately selling at $0.33. The offering is expected to occur on or about February 10, 2021.

Auxly said each Unit shall be made up of one common share of the company and one-half of one Common Share purchase warrant of the Company. Each Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price of $0.46 at any time up to 36 months from the closing of the Offering. The company said it has granted the Underwriters an option to increase the size of the Offering by up to an aggregate number of Units, and/or the components thereof, equal to 15% of the total number of Units issued under the Offering, such Underwriters’ Option being exercisable at any time and from time to time up to 30 days following the closing of the Offering.

The net proceeds will be used for working capital and general corporate purposes.

A Need For Cash

In November, Auxly reported $13.57 million in cash and cash equivalents for the three month period leading up to September 30th. This is 69% less than what was reported as of December 31st, 2019. Last year’s cash equivalents totaled $44.13 million. Auxly’s claimed at the time it had $381,598 in total assets and $112,358 in debt. Auxly reported a decrease in selling, general, and administrative expenses – dropping down to approximately $11.36 million from roughly $16.59 million during the same time last year. So there seemed to be a cash crunch happening.

Also in November, Auxly reported total net revenue of $13.4 million for the three months that ended on September 30th. Before excise taxes and research contacts, this figure is $15.2 million. Their reported net revenue represents an 85% increase from the previous quarter and a 732% increase from the same period last year. Last year’s total revenue clocked out at roughly $1.6 million, representing an approximately $11 million dollar difference.

 


Debra BorchardtSeptember 22, 2020
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A trip to the grocery store in fall is a trip down pumpkin spice land. Like Cinderella’s carriage, it seems like every product is impossibly turned into pumpkin spice. Thank goodness one cannabis company has opted for maple instead. Foray is a Canadian cannabis brand that is rolling out a line of infused maple candies and it feels like a cruel joke on us poor Americans. Foray is owned and operated byAuxly Cannabis Group Inc. (TSX.V – XLY).

Canadians Like Maple Better

A national consumer survey commissioned by Foray, which found that 74%, or nearly three quarters, of Canadians, prefer the flavor of maple to pumpkin spice.  The results were overwhelmingly in favour of maple. Nationally, 74% of Canadians prefer maple to pumpkin spice. Regionally, Quebec (88%), Ontario (73%) and Alberta (72%) showed the highest preference for maple, with Manitoba (64%) and Saskatchewan (59%) demonstrating the lowest preference. Demographically, 83% of men and 67% of women prefer maple; interestingly, women (33%) were nearly twice as likely as men (17%) to prefer pumpkin spice.

“At Foray, we’re constantly researching about new products to bring to the marketplace for both novice and more experienced consumers, and we’re thrilled to launch Foray Hard Maple Caramels in time for the fall season,” said Eric Goulet, Brand Director, Foray. “Congratulations to the entire product innovation team for bringing an exciting new product category to the Canadian market with Foray Hard Maple Caramels.”

Made using real Canadian maple syrup, butter, cream – and of course, cannabis – Foray Hard Maple Caramels are going to cannabis retail stores across Canada this October. Foray Hard Maple Caramels represent a new product category for cannabis 2.0 consumers, developed by Auxly’s product innovation team. Hard Maple Caramels will be available in a two-pack, with each piece containing 5 mg of THC. Each piece is made using real maple syrup, sourced from a co-operative in New Brunswick, along with real butter and cream, and a Sativa/Indica cannabis blend. Foray Hard Maple Caramels are manufactured in Charlottetown, Prince Edward Island, where each batch undergoes rigorous testing to ensure a high-quality, consistent dosage with every use.

Hard Maple Caramels join Foray’s line-up of popular Cannabis 2.0 products, which includes: Soft Chews, in Raspberry Vanilla (THC) and Peach Mango (Balanced) formulations; Chocolate, in Dark Chocolate (THC), Vanilla Chai Milk Chocolate (THC), and Salted Caramel (Balanced) varieties; and Vapes, in strains such as Blackberry Cream (Indica), Strawberry Ice (Sativa), Maui Wowie (Sativa), Mango Haze (Balanced and CBD), and Goji OG (Hybrid).


Debra BorchardtAugust 28, 2020
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Auxly Cannabis Group Inc. (OTCQX: CBWTF) reported total net revenues of $8.6 million for the second quarter ending June 30, 2020. This was a 200% increase over the same period last year and attributed to $6.8 million of cannabis net revenues and research revenues from KGK of $1.8 million.

The net loss at Auxly grew to $27 million from last year’s net loss of $8 million. The increase in net losses was primarily attributable to total other losses recorded during the second quarter, increased depreciation, interest expense, partially offset by gross margins net of selling, general and administrative expenses.

“We are excited to have another successful quarter of cannabis sales behind us, with Q2 bringing in $6.8 million of cannabis net revenues and $8.6 million in total net revenues,” said Hugo Alves, CEO of Auxly. “Despite a decline in sales as compared to Q1 2020, due in part to temporary store closures as a result of COVID-19 and new competitor value brands entering the market, we have taken immediate and deliberate steps to align our Company to reflect current consumer demands and market conditions.  We have already seen improved velocity of sales for our key brands from the pricing adjustments we made earlier this quarter, and are adding new product profiles that appeal to the fast-growing value segment, such as our Foray and Kolab Project’s 1g vape cartridge.  Additionally, we have seen a tremendous consumer response to the recent launch of our Robinsons and Kolab dried flower offerings.  As we move forward in executing our business strategy, we are committed to doing so with the highest degree of fiscal discipline.”

Impairment Loss

Auxly reported that it took an impairment loss on long-term assets of $4.5 million in the second quarter. “The Company’s LATAM cash generating unit Inverell represents its operations dedicated to the cultivation and sale of cannabis products within LATAM. Management determined that a liquidation approach was most appropriate in determination of the recoverable amount of the CGU due to regulatory delays causing uncertainty in the timing of sales and lack of cannabis product sales data in the industry.”

The company reported that over the three and six months ending June 30, 2020, wages and benefits were $7.5 million and $14.0 million, respectively, or an increase of $3.4 million and $5.7 million over the same respective periods in 2019. The increase was driven by workforce increases to support Cannabis 2.0 Product sales, primarily related to the operations and commercial teams.

Looking Ahead

The company had the following outlook for the remainder of the year, With the launch of the Company’s Cannabis 2.0 Products in December 2019, Auxly has established the foundation it plans to build on in 2020 to increase revenues and move towards positive cash flows in 2021. The Company’s objectives for 2020, which may be impacted by the COVID-19 pandemic (see further discussion in the MD&A under “COVID-19 Pandemic”), continue to be concentrated on Canadian operations. Broadly, Auxly’s objectives for the balance of the year are as follows:

Be a leader in the Canadian Cannabis 2.0 Products market. Complete remaining construction and licensing of all Canadian operations to leverage existing assets and increase revenues. Work with the Sunens team to secure the supply of input materials for use in the Company’s product offerings in 2020. Collaborate with strategic partners to move towards commercialization of a small number of products for sale internationally. Continue to take measures to improve cash flows and finance the business.


StaffMarch 29, 2019
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Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF)  released its fourth quarter and full year 2018 financial results. Auxly report $747k of research revenues from the recently completed acquisition of KGK in the third quarter of 2018. This compares to no revenues in 2017.

For the year  2018, Auxly delivered a net loss of $66 million with a net loss of $0.14 per share on a basic and diluted basis. This compares to a net loss of $18 million for 2017 with a net loss of $0.11 per share on a basic and diluted basis. The decrease in net income was primarily driven by an increase in expenses, compounded by non-cash expenses and losses during the period, partially offset by increased income tax recoveries of $1,641,000.

Chuck Rifici, CEO and Chairman of Auxly commented: “2018 was an important year for us, as we made substantial progress towards our objective to become a vertically integrated cannabis company. We were successful in building a diverse and robust cultivation pipeline, have made progress on adding value through the research and development of derivative cannabis products through Dosecann, and expanded our distribution channels for bringing cannabis products to market. We added key strategic assets and partnerships to our portfolio, have over $200 million of cash and cash equivalents, and are well positioned to execute on our objectives for this year.”

Expenses

Auxly recorded share-based expenses of $20 million for 2018, an increase of $17,082, over 2017. Wages and benefits were $9 million for 2018 an increase of $7 million over 2017, primarily due to an increase in Auxly employees to support the scaling of the business of $5 million and workforce costs associated with the four acquisitions completed in 2018.

Professional fees were $7 million for 2018. This compares to $2 million in 2017. The increase in professional fees was attributed to ongoing services related to Auxly’s investment opportunities, due diligence, and costs associated with four acquisitions.

Looking Ahead

Auxly said its priorities for 2019 were as follows:

  • complete product R&D, formulation and manufacturing activities at the Dosecann facility in preparation for the legalization of derivative cannabis products;
  • complete construction of all ongoing cultivation assets, while continuing to work with the Company’s joint venture partner Sunens’ as it completes the state-of-the-art greenhouse facility in 2019, with expected supply of over 100,000 kg of cannabis in 2020;
  • continue to support the rollout of Kolab and Robinsons and build brand awareness; and
  • opportunistically expand the Company’s footprint in international markets to facilitate the sale of CBD, derived from its large-scale hemp cultivation operation in Uruguay.

Debra BorchardtFebruary 8, 2019
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FSD Pharma Inc. (FSDDF) and Auxly Cannabis Group Inc. (AXLY) have terminated their agreement to work together. The divorce is anything but friendly so far.

The first shot was fired on Wednesday when  FSD Pharma said that Dr. Raza Bokhari, Executive Co-Chairman, had been appointed interim Chief Executive Officer of FSD Pharma following the termination of Rupert Haynes. The statement went on to say that it terminated its agreement with Auxly and that Auxly was obligated to develop all aspects of the company’s cannabis cultivation facility in mutually agreed upon staged phases. However, it didn’t go into any detail.

On Thursday, Auxly said that it was FSD that breached the agreement and when notified and asked to comply with the agreement, FSD didn’t and then tried to control the message by announcing it had terminated first.

Auxly gave much more detail saying, “The joint venture was formed with the intention of developing a portion of FSD Pharma’s cannabis cultivation facility located in Cobourg, Ontario in mutually agreed staged phases. Auxly was supposed to receive a 49.9% stream of all cannabis produced at the JV Facility; the first phase of the JV Facility Development was to be the construction of an approximately 220,000 square foot self-contained cultivation facility.” Auxly said it has invested $7.5 million in the development and construction of the facility.

Auxly said it identified contractual breaches relating to FSD Pharma’s management and staffing obligations of the facility, as well as significant concerns regarding certain aspects of the buildings’ infrastructure. Auxly said it told FSD Pharma of the breaches in the hopes that FSD Pharma would work with toward a resolution. Auxly said FSD Pharma failed to remedy its breaches and instead purported to terminate the agreement effective February 6, 2019. Auxly then terminated the agreement effective February 7, 2019.

On Friday, FSD said that it hadn’t breached any of its contractual obligations and instead blamed Auxly for the problems in the agreement. “FSD Pharma strongly denies that it caused any breaches of the Streaming Agreement relating to its management and staffing obligations or otherwise, and rejects the claim that there are material issues with the infrastructure of its cultivation facility in Cobourg, Ontario.”

The company said that “As disclosed on Wednesday, February 6, FSD terminated the Definitive Agreement with Auxly. FSD believes that Auxly was under clear obligation to develop all aspects of the Company’s cannabis cultivation facility in mutually agreed upon staged phases. Auxly issued a press release on July 3, 2018, in which they anticipated that the first phase of construction would be completed and ready for Health Canada approval by the end of December 2018. We simply couldn’t wait any longer for our vendor to perform its obligations and therefore we terminated the agreement,” said Dr Raza Bokhari, Executive Co-chairman & Interim CEO.

Dr. Bokhari continued, “under the terms and conditions of the Streaming Agreement, FSD Pharma and Auxly are subject to a number of non-disclosure obligations that survive the termination. FSD Pharma intends to continue to live up to its surviving obligations, we are hopeful that Auxly will do the same.”


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