Auxly Announces Strategic Investment in FSD Pharma
VANCOUVER, British Columbia, Sept. 20, 2018 (GLOBE NEWSWIRE) — Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF) (“Auxly” or the “Company”) is pleased to announce that, as part of the strategic alliance and streaming agreement previously announced on March 5, 2018, Auxly has completed a $7,500,000 equity investment (the “Transaction”) in FSD Pharma Inc. (CSE: HUGE) (“FSD”).
Pursuant to the Transaction, Auxly has subscribed for $7,500,000 of publicly traded Class B Subordinate Voting Shares of FSD at a price of $1.00 per share (“Purchased Shares”). The Purchased Shares are subject to a statutory hold period expiring four months and one day from the date of issuance, on January 20th, 2019.
Proceeds from the financing will be used to fund the ongoing construction of the initial 220,000 square feet of cultivation space that Auxly and FSD are jointly developing at FSD’s 620,000 square foot facility (the “Facility”) in Cobourg, Ontario pursuant to the agreed upon construction and development budget, announced on July 3, 2018. The jointly developed cultivation space, which is currently under construction, will also include a dedicated space for large scale extraction. Auxly retains a 49.9% stream of all cannabis and cannabis-derived products produced at the Facility, under partnership with Auxly, in perpetuity.
FSD Pharma is an important partner to Auxly and a partner that we value highly as a contributor of high quality indoor hydroponic cannabis to the Auxly platform.
Hugo Alves, President of Auxly
We are incredibly pleased with the progress we have jointly made on the construction of the first phase of the facility and look forward to working closely with FSD’s team to design and build out this world class asset.
ON BEHALF OF THE AUXLY BOARD
“Chuck Rifici” Chairman & CEO
About Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF)
Auxly Cannabis Group is a collective of entrepreneurs with a passion for the cannabis industry past, present and future. Our mandate is to facilitate growth for our partners by providing them with financial support and sharing our collective industry experience. Our partners all have different visions, voices and brand values, and all share a common goal—to build a world-class industry based on ethics, diversity, quality and innovation.
