FSDDF - FSD Pharma: Can It Survive Funding Shortfall Without Auxly?
On February 6, 2019, FSD Pharma (OTCQB:FSDDF) announced the termination of its joint venture agreement with Auxly (otcqx:CBWTF), a cannabis streaming company. The termination was announced unilaterally by FSD and was included in the same press release that also announced the departure of its CEO Rupert Haynes. We think the termination creates significant challenges to FSD's near-term funding outlook as it will be required to secure alternative funding for its yet-to-be-completed Phase I expansion. We think the business risk has increased substantially for FSD and investors should stay cautious.