|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.5600 - 0.5850|
|52 Week Range||0.3970 - 0.8200|
|Beta (5Y Monthly)||7.59|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
In addition, warrants issued on January 16, 2018 to purchase 32,200,000 shares of the Company’s common stock at a strike price of $1.80 expired as of January 16, 2020. The warrants, which traded under the TSX venture symbol XLY.WT.A, have been delisted. “The repayment of the remaining debentures, together with the expiration of the 2018 warrants, has simplified our capital structure,” said Hugo Alves, CEO of Auxly.
The Canadian cannabis sector just can’t get regulators out of its way. The Cannabis 2.0 products were finally made available on December 17, yet a large portion of the provinces won’t allow key vape sales.Last week, Alberta suspended the sales of cannabis vaping devices due to the concerns around their health effects despite signs that the vaping health issues are related to illegal vape products. While the regulatory agency has made it clear that this move is only a suspension, Canadian cannabis companies can’t afford more delays.The Cannabis 2.0 products like vapes, edibles and topicals were supposed to carry higher margins and Eight Capital has vapes accounting for 20% of the market. A big profit driver of the market is now removed as Alberta isn’t the only province pushing back on vapes.Quebec has banned vapes and most 2.0 products. In addition, Newfoundland and Labrador have suspended vapes and British Columbia slapped a 20% tax on vape product sales. Ontario also has major cannabis retail store issues.The new plan released by the Alcohol and Gaming Commission of Ontario (AGCO) has guidelines for companies submitting store applications on March 2, with a goal of ultimately approving up to 20 retail locations per month starting in April. In total, Ontario is set to add 180 new stores next year and reach 250 stores by the end of 2020.The Ontario market includes the key Toronto metro area and nearly 40% of the total Canadian population of 37 million. The Alberta and Quebec provinces add another 35% of the population blocked from the vape market. Only a fraction of the Canadian market has easy access to buy vape products and virtually no part of the population has cheap access to vapes.We’ve delved into three companies that were set to benefit from vapes, but are now positioned to struggle until Ontario adds more retail stores and Alberta and Quebec remove the suspension on selling vape products:Aphria (APHA)Back in July, Aphria signed a deal with PAX Labs for their premium cannabis vaporization devices. At the time, the company estimated vapes and concentrates will represent 30% of the entire Canadian adult-use market by 2021. In addition, the company plans to strategically market edibles, beverages and topicals, with the hope that these products will eventually make up 10% of total sales.Amongst the large Canadian LPs, Aphria is the least promotional on new product formats. The company forecasts strong sales from the category without really drumming up the actual products.Aphria has a stated goal of reaching a C$1 billion annual revenue run rate at the end of 2020 with higher margins. The question one has to ask is whether the company can reach those targets without a full 30% of revenues coming from vapes and concentrates along with the much higher margins.The FY20 forecast for revenues reaching nearly C$700 million would presumably require a substantial boost from vape sales. When the company reports FQ2 earnings in mid-January, the market will zero in on any update to financial targets after the initial weeks of Cannabis 2.0 sales and the general lack of availability of vape sales so crucial to hitting revenue targets.While there are concerns, Wall Street analysts generally remain optimistic. The Moderate Buy analyst consensus breaks down into 6 Buy ratings and 1 Sell received in the last three months. Not to mention the $8.51 average price target puts the upside potential at 74%. (See Aphria stock analysis on TipRanks) OrganiGram Holdings (OGI)OrganiGram just announced the release of their first Cannabis 2.0 products. Several versions of their 510-thread vape cartridges have been shipped to Manitoba, Saskatchewan, Ontario, New Brunswick and Nova Scotia from the company’s Moncton production campus.The only meaningful province on the list is Ontario where sales aren’t going to be significant with only 24 retail stores open in the province. OrganiGram is one of the first companies with vape products on the market, but the company doesn’t have a market to sell to.OrganiGram is offering cartridges with three distinct offerings, Spark (sativa-dominant), Flicker (hybrid) and Glow (indica-dominant), inspired by dried flower and pre-roll products under the company’s Trailblazer-branded product lineup.It plans to release other vaporized products over the next month including Edison + Feather ready-to-go distillate pens and Edison + PAX ERA distillate cartridges. Other products set for Q1 and Q2 release are infused chocolates and dissolvable powdered beverage products designed for faster onset of cannabinoids.However, analysts only expect sales for FQ2 to reach $18.8 million. This isn’t even close to the peak levels from last year. Investors have to expect actual numbers to miss sales estimates due to the lack of any meaningful sales outlet for vapes.Despite this, analysts aren’t giving up on OGI just yet. Looking at the consensus breakdown, 5 Buys and 2 Holds add up to a Moderate Buy. On top of this, the $6.14 average price target suggests shares could soar 161% in the twelve months ahead. (See OrganiGram price targets and analyst ratings on TipRanks) Auxly Cannabis (CBWTF) Auxly Cannabis Group is one of the smaller Canadian cannabis companies offering a full suite of Cannabis 2.0 products. The vapes are based on technology from major investor Imperial Brands (IMBBY). The company has two brands releasing different vape products with various levels of THC and CBD formulations.The Toronto based company has over 250 listings for Cannabis 2.0 products across nine provinces that cover vape, chocolate and chewable products. In total, Health Canada approved 83 derivative cannabis products for this rollout.The recent Q3 report showed revenues of only C$1.6 million, mostly for research contracts. Additionally, analysts project 2020 revenues will reach $65 million, with a lot of the forecast revenue being based on vape sales.The stock has a listed market valuation of $276 million so the biggest risk is the lack of access to vape customers, which hurts projected growth of a company still in startup mode. (See Auxly stock-price forecast and analyst ratings) Check out these 5 ‘Strong Buy’ stocks that top Wall Street analysts recommend.Disclosure: No position. Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.
Imperial Brands has subscribed for the Purchased Shares to maintain its pro rata ownership in Auxly as follows: i) 914,960 common shares at a subscription price of $0.91 per share; and ii) 5,400,614 common shares at a subscription price of $0.81 per share, issuable to Imperial Brands; for the issuance of shares to non-executive employees and for the remaining 6% unsecured convertible debentures. “We are delighted that Imperial Brands continues to support our vision of being a global leader in branded cannabis products,” said Hugo Alves, CEO of Auxly.
Auxly Cannabis Group Inc. (TSX.V - XLY) (“Auxly” or the “Company”) today announced the unveiling of its “Cannabis 2.0” products in vape, chocolate and chewable formats which are legally available for sale beginning today under its signature brands, Kolab Project, Foray and Dosecann. “Having our initial suite of Cannabis 2.0 products ready to go on the first day sales are legal in Canada is a huge milestone for our company," said Hugo Alves, CEO, Auxly.
To help put a definitive end to persisting illicit cannabis markets, Uruguay's senate has passed a new bill to regulate medical marijuana. The bill, "A Comprehensive Law for the Promotion and Access to Medical and Therapeutic Cannabis," was introduced into Congress by the "Ir" sector of the “Frente Amplio” party, and approved unanimously. The new bill also presents guidelines for pharmaceutical compounding.
Auxly Cannabis Group Inc. (TSX.V - XLY) (“Auxly” or the “Company”) today announced that it has entered into an agreement with every Canadian province (except Quebec) to commence sales of cannabis 2.0 products (extracts, edibles and topicals) and has secured in excess of 250 listings in the aggregate for its vape, chocolate and chewable products across nine provinces. This development, following the Company’s submission to Health Canada of new product notifications for 83 derivative cannabis products announced in October, means that Auxly will be ready to sell vapes, chocolates and chewables beginning December 16 when the sale of those products becomes legally permitted. “This is a major milestone for us,” said Hugo Alves, CEO of Auxly.
TORONTO, Nov. 22, 2019 -- Auxly Cannabis Group Inc. (TSX.V - XLY) (OTCQX: CBWTF) ("Auxly" or the "Company") today released its financial results for the three and nine months.
Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the "Company"), together with its wholly owned subsidiary Robinsons Cannabis Inc. (“Robinsons”), is thrilled to announce Robinsons Outdoor Grow (“Robinsons OG”), a large scale, high quality outdoor cultivation project located in the heart of Nova Scotia’s award-winning wine region of Annapolis Valley. Robinsons OG is uniquely located in a region that is ideal for outdoor cannabis cultivation given its diverse soil types and microclimates; the same soil on which the Acadians grew hemp over 250 years ago. Located within 25 kilometers of Robinsons’ 27,700 square foot indoor facility, Robinsons OG is comprised of over 158 acres of land in Hortonville, Nova Scotia and offers road frontage and highway access, allowing for the potential future development of tourism and point of sale opportunities.
Auxly Cannabis Group Inc. (XLY.V) (CBWTF) (“Auxly” or the “Company”) today announced that, further to the Company's October 18, 2019 press release, certain holders of the Company's remaining 6% unsecured convertible debentures in the principal amount of $98,690,000 maturing on January 16, 2020 (the "Debentures") elected to either convert or amend their Debentures, resulting in $95,425,001 of the principal amount of the Debentures being settled and reducing Auxly’s interest expense by approximately $1.25 million through: (i) the repayment of $79,439,174 of debt; and (ii) the conversion of $15,985,826 into 21,602,460 common shares of the Company at the price of $0.74 per share. “The successful repayment of the majority of the Debentures has strengthened our balance sheet and effectively left Auxly with no long-term debt payable for the next three years,” said Hugo Alves, CEO of Auxly.
Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the "Company") today announced that its wholly-owned subsidiaries, Dosecann Inc. (“Dosecann”) and Kolab Project Inc. (“Kolab”), have received amendments to their respective oil sales licences from Health Canada. The Cannabis Regulations require licenced processors to submit a notification to Health Canada of their intent to sell each novel cannabis product in Canada at least 60 calendar days before making such cannabis products available for sale. Auxly, through its subsidiaries, has successfully submitted a total of 83 unique product SKUs to Health Canada for the new derivative product formats that the Company intends to offer for sale beginning in mid-December.
Auxly Cannabis Group Inc. (XLY.V) (CBWTF) (“Auxly” or the “Company”) today announced that it has received approval from the TSX Venture Exchange (the "TSXV") to amend the conversion price under its 6% unsecured convertible debentures in the principal amount of $100,000,000 maturing on January 16, 2020 (the "Debentures") from $1.55 per share to $0.74 per share. The Company will provide written notice (the "Notice") to holders of Debentures advising them of the proposed reduction in the conversion price and providing holders with the opportunity to immediately convert the principal amount of their Debentures at the revised conversion price.
Auxly Cannabis Group Inc. (XLY.V) (CBWTF) (“Auxly” or the “Company”) today announced that its transaction (the “Transaction”) with Imperial Brands PLC (“Imperial Brands”) has closed. As announced on July 25, 2019, Imperial Brands invested C$123 million by way of a debenture pursuant to the Transaction, which is convertible into 19.9% ownership of Auxly. Imperial Brands grants Auxly global licenses to its vaping technology, access to its vapor innovation business, Nerudia, and will use Auxly as its exclusive partner for the future development, manufacture, commercialization, sale and distribution of cannabis products of any kind anywhere in the world. “We are delighted to announce the closing of this transaction to formally mark the start of our strategic partnership with Imperial Brands,” said Hugo Alves, Chief Executive Officer of Auxly.
Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the "Company") is pleased to announce that its joint venture partner, Sunens Farms Inc. (“Sunens”), has closed the previously announced $84 million syndicated credit facilities, with the Bank of Montreal (“BMO”) as Lead Underwriter. The syndicated senior debt facility will be for $71.5 million (the “Credit Facility”) for a three-year term together with a BMO $12.5 million leasing facility (the “Leasing Facility”). Sunens is a fully automated, purpose-built greenhouse for cannabis cultivation currently under construction in Leamington, Ontario. The proceeds of the Credit Facility will be used to fund phase one of the Sunens facility, which is expected to be substantially completed by December 2019.
Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly") and Kindred Partners Inc. (“Kindred”) are pleased to announce that they have entered into a brokerage agreement pursuant to which Kindred will act as Auxly’s exclusive sales agent for its adult-use cannabis products in Canada. Kindred, a wholly-owned subsidiary of Breakthru Beverage Group, is a Toronto-based specialty cannabis brokerage serving the adult-use market. Kindred leverages the deep experience of its sister-company, Breakthru Beverage Canada, in working with Canadian Provincial control boards, licensed distributors and retailers to broker regulated cannabis products for the adult-use market.
Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the "Company") today announced that its wholly-owned subsidiaries, Dosecann Inc. (“Dosecann”) and Kolab Project Inc. (“Kolab”) have both been authorized by Health Canada to sell cannabis oil under the Cannabis Regulations. The issuance of these sales licences marks a significant milestone for Auxly in furthering its strategy to deliver branded derivative cannabis products to market when such products become legal later this year.
Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the "Company"), together with its strategic partner, Atlantic Cultivation (“Atlantic”), is thrilled to announce today that it has entered into a comprehensive supply, development and retail agreement with the Province of Newfoundland and Labrador. The agreement marks a significant milestone in the establishment of Auxly’s presence in Atlantic Canada. Under the terms of the agreement, Atlantic will be eligible to apply to operate five new retail locations in the province.
Following a long downturn in wholesale marijuana prices, Colorado, Oregon, and Washington are suddenly pulling a 180.
Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the "Company") today announced that it has entered into a hemp cultivation and purchase agreement (the “Agreement”) pursuant to which the Company has agreed to act as the financial sponsor for the development of a hemp farming co-operative consisting of six individual hemp licence holders pursuant to the Cannabis Act (collectively, the “Hemp Farmers”) located in Prince Edward Island. To date, the Company has funded $4.5 million of the approximately $6 million it will advance and the Hemp Farmers have planted nearly 300 acres of hemp, which is expected to result in approximately 100,000 kilograms of hemp biomass.
VANCOUVER, British Columbia, Aug. 16, 2019 -- Auxly Cannabis Group Inc. (TSX.V - XLY) (OTCQX: CBWTF) ("Auxly" or the "Company") today released its financial results for the.
Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the "Company") is pleased to announce that its joint venture partner, Sunens Farms Inc. (“Sunens”), has entered into a term sheet for a syndicated credit facility, with the Bank of Montreal (“BMO”) as Lead Underwriter and, subject to the satisfaction of certain customary closing conditions and the finalization of definitive loan documentation, expects to receive debt financing in the aggregate amount of approximately $84 million. The syndicated senior debt facility will be for $71.5 million (the “Credit Facility”) for a three-year term together with a BMO $12.5 million leasing facility (the “Leasing Facility”). Sunens is a fully automated, purpose-built greenhouse for cannabis cultivation currently under construction in Leamington, Ontario.
Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the "Company") today announced that its Board of Directors has named Hugo Alves, President, to succeed Chuck Rifici as CEO, effective August 27, 2019. Mr. Rifici will continue to serve as Chairman of Auxly’s Board of Directors.
A lot of shareholders and former shareholders have soured on Auxly Cannabis Group (CBWTF) because of low performance, a weak stable of companies, and questions about its ability to survive long enough to deliver on its streaming business model.The company recently received a reprieve from some of this concerns after it was announced the British-based tobacco firm Imperial Brands was investing C$123 million ($93.4 million) into Auxly.Terms of the dealThe C$123 million investment came by means of a convertible debenture. The conversion price was set at C$0.81 per share. At the time of the announcement it presented an 11 percent premium over the closing price of the prior trading session. Per terms of the deal Imperial Brands included an option to exercise the note at any time during the three-year term. If Imperial chooses not to convert, the debenture is required to be repaid in full.On the part of Imperial, that's a very safe bet. It's getting just under 20 percent of Auxly Cannabis for what is essentially kicking the tires, i.e., a trial run.Benefit to AuxlyEven though Auxly predictably got a quick boost to its share price when the cash infusion was announced, it hasn't been able to hold, and the share price has dropped back to trading between 60 cents and 70 cents. This, as mentioned earlier, is because of the negative sentiment associated from the company on past under performance and growing discontent from many retail shareholders in particular.That said, it has to be admitted that the C$123 million definitely changes the possibilities and flexibility of the company, as it should be able to complete construction on its wholly-owned farm construction, along with a joint venture it has been working on.In the near term, the additional capital will help it build out a portfolio of derivative products that will be allowed to be sold in Canada in the latter part of 2019.Of those, vapes are projected and expected to be one of the top-selling derivatives, which will strengthened by Auxly's access to Nerudia products, which competes in the vaping market. Vapes and other derivatives command higher prices, which will generate wider margins and earnings.Last, the distribution network of Imperial Brands extends to global markets, and that should provide Auxly with fast access to those markets. Imperial's experience in marketing to those disparate markets should allow Auxly to leverage it to accelerated growth.ConclusionIt can't be overstated how much Auxly Cannabis Group needed this type of deal. The company had been floundering and many questions have been raised by disgruntled shareholders and former investors as to the viability of the business model of the company, and its ability to execute it profitably.With the company's name now being associated with Imperial Brands and its C$123 million investment, it has definitely given it a chance to change that negative sentiment around and make believers of shareholders once again.In the near term the vapes business will provide the immediate impact on the performance of the company, although that won't start to happen meaningfully in the first quarter of calendar year 2020. The earnings report for that time period will give a glimpse into what expectations for investors will be.At the same time, expectations need to be tempered because it's uncertain at what pace products will be distributed and how long it'll take to fully serve the Canadian market. It could take longer than some think at this time, which is probably part of the reason the temporary boost in the share price of the company didn't hold.Auxly will definitely need to use some of that capital to land more streaming deals as well, as it needs to show some ability to generate a predictable stream of income, which is one of the attractions a streaming company of any type has for investors.For now, Auxly Cannabis remains a high risk stock in my opinion, even with the cash infusion from Imperial. It'll take time for it to turn itself around, but if it can, and the vape business takes off relatively soon after Canada allows derivatives to be sold, it could start to change the narrative to a more positive one for the company.I think, with the company as it is today, most investors are going to maintain a wait-and-see attitude until after the first earnings report of 2020, to get more visibility on the viability of the company and how long it'll take for it to generate some sustainable revenue.The good news is the capital should allow it to enter into more deals that may provide it with more revenue in the short term. If that happens, the share price could take off before 2020.See price targets and analyst ratings on TipRanks
Auxly Cannabis Group Inc. (XLY.V) (CBWTF) (“Auxly”), an international cannabis company, today announced that Imperial Brands PLC (“Imperial Brands”) will invest approximately $123 million in Auxly by way of a convertible debenture and grant Auxly global licences to Imperial Brands’ vaping technology and access to its vapor innovation business, Nerudia (the “Transaction”). “This investment from Imperial Brands will enhance Auxly’s ability to continue to deliver on our business plans and accelerate our growth initiatives to expand our portfolio of branded derivative products,” said Hugo Alves, President of Auxly.