FSD Pharma Archives - Green Market Report

Debra BorchardtDebra BorchardtFebruary 8, 2019
shutterstock_1583395.jpg

4min1272

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.”


StaffStaffJuly 3, 2018
daily_hit004-1280x533.png

5min3660

It’s time for your Daily Hit of cannabis financial news for July 3, 2018.

On The Site

Aurora Cannabis Inc. 

Aurora Cannabis Inc.  (ACBFF) gave several updates on different pieces of the company. The Aurora Vie production facility in Point-Claire Quebec got its sales license from Health Canada. The company said that this facility is on target to produce high-quality cannabis at a rate of 4,000 kg per year y October 2018 and that multiple harvests have been completed to date. Aurora has also modified the facility to produce softgel products. Its partner Capcium, is now installing equipment to commence high-volume production of these cannabis softgels.

Aurora also gave an update on the CanniMed company it acquired. The integration of the two companies is now complete. In addition, Aurora has received its Health Canada license for the production of encapsulated oil for its Mountain facility.

In Other News

RISE Life Science Corp.

RISE Life Science Corp. (CSE: RLSC) announced that it has closed a non-brokered private placement through the issuance of an aggregate of 4,824,399 units at a price of $0.30 per Unit for gross proceeds of $1,447,319.70. Each Warrant entitles the holder thereof to purchase one Common Share for a period of 24 months from the date of closing at a price of $0.45 per common share. The proceeds of the offering will be used for general working capital purposes.

MedMen Enterprises Inc.

MedMen Enterprises Inc. (MMEN.CN) (MMNFF), completed its first harvest at its cultivation and production facility outside Reno, Nevada. The test crop was only a fraction of the facility’s 10,000 pounds planned annual production capacity, but it went very smoothly and all systems functioned as designed, according to Dan McClure, MedMen’s vice president of agronomy.

Body and Mind Inc.

Body and Mind Inc. (BMMJ) announced approval of the final building inspection for the Phase II expansion from the Clark County Department of Building and Fire Prevention. The company initiated the Phase II expansion plans in early 2018 and is on time and budget to complete the increased production space, additional trim area, dry room and expanded packaging area.

CannaRoyalty Corp.

CannaRoyalty Corp. (CNNRF)  closed the previously announced acquisition of FloraCal Farms, a licensed premium craft cannabis producer located in Sonoma County, California. FloraCal has a temporary medium indoor cultivation license from the state of California, as well a Type 6 non-volatile manufacturing permit in Sonoma County. FloraCal is building its Sonoma County facility in three Phases and has been designed to comply with cGMP* standards.

FSD Pharma Inc.

FSD Pharma Inc. (CSE:HUGE) said that its first phase of the buildout of the FV Pharma facility in Cobourg, Ontario has been approved in an updated construction and development budget provided by Auxly. Of the current 620,000 square feet of building space available, 220,000 square feet will be developed and fully funded. As part of this project, Auxly will contribute $55,000,000 to buildout the Facility.

 

The markets will be closed on Wednesday for the Fourth of July and there will be no Daily Hit.



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 23 hours

Seaport Global Initiates Coverage on Top-Leading Cannabis Firms

@GreenMarketRpt – 2 days

My week on Twitter 🎉: 9 Mentions, 18K Mention Reach, 19 Likes, 8 Retweets, 104K Retweet Reach. See yours with…

Back to Top

You have Successfully Subscribed!