Auxly Cannabis Archives - Green Market Report

Debra BorchardtDebra 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.

 


StaffStaffSeptember 9, 2020
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Auxly Cannabis Group Inc. (OTCQX: CBWTF) closed on an additional $2 million worth of unsecured convertible debentures under its $25 million unsecured convertible debenture standby facility with an institutional investor as previously announced on April 28, 2020.

The convertible debentures that Auxly issued to the investor have a conversion price of $0.18 per common share of the company, while the stock currently trades at $0.12. The investor received warrants to purchase 6,111,111 common shares until September 8, 2022 at an exercise price of $0.216 per Common Share.

In connection with the completion of the Tranche, Auxly said it has agreed to indemnify certain of its directors and officers for any and all losses not otherwise recoverable from the collateral provided by the investor for the common shares. The Indemnity may constitute a related party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“) but is otherwise exempt from the formal valuation and minority approval requirements of MI 61-101. The Indemnity has been approved by the independent directors of the Company.

The company said in a statement that each convertible debenture will mature on September 8, 2022 and will bear guaranteed interest from the date of issue at 7.5% per annum, payable semi-annually on June 30 and December 31 of each year and has the same terms and conditions as described in the Original Offering and the transaction documents filed on the Company’s SEDAR profile

Kolab Project

Last week, Auxly’s Kolab Project and Lotus Cannabis Co. launched Kolab Project cannabis flower in select licensed retailers across Canada. Kolab Project Kalifornia is a heavy-hitting Indica-dominant strain, which is the result of a collaboration between Kolab Project and Lotus Cannabis Co., the consumer brand of Lotus Ventures Inc. (OTC:LTTSF).

“Kolab Project and Lotus Flower are a dream team,” said Hugo Alves, CEO, Auxly. “We’re excited to leverage Kolab Project’s marketing and distribution expertise to bring this premium product to Canadians at a competitive price point. Congratulations to the talented and dedicated Lotus team, renowned in the region for their passion for growing and commitment to their craft. We are proud to work with Lotus to transparently introduce Canadian consumers to their story and their high-quality products.”


William SumnerWilliam SumnerJuly 25, 2019
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It’s time for your Daily Hit of cannabis financial news for July 25, 2019.

On the Site

Leafwire

Leafwire, the largest cannabis business network worldwide, announced today the closing of a Seed Round for $1 Million. Since its launch, Leafwire has grown rapidly, often with over 1,000 members visiting the platform daily. Leafwire currently boasts more than 16,000 members currently and is projected to surpass 25,000 members by the end of the year.

Executive Spotlight: Jessica Velazquez, Managing Partner of Indiva Advisors LLP

Jessica Velazquez is a Certified Public Accountant (CPA) licensed in Illinois & Nevada and Partner of Indiva Advisors LLP, a full-service accounting firm for cannabis and hemp businesses.

Heavenly Rx

The hemp-CBD company Heavenly Rx Ltd. announced today that it has closed its acquisition of Tru Brands Inc. Tru Brands is a health and wellness company focused on developing a suite of all-natural food products. Under the agreement, Heavenly Rx will acquire a 51% stake in Tru Brands for $3.5 million in cash and $2.57 million in company stock. Through a series of working capital injections, the company will eventually increase its stake in Tru Brands to 62%.

Auxly Cannabis

The tobacco industry is betting big on cannabis. Today, Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF) announced that the international tobacco company Imperial Brands PLC will make a $123 investment in the company through a convertible debenture.

In Other News
Namaste Technologies

Namaste Technologies Inc. (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) announced that it has settled a series of class action lawsuits filed against the company in both the United States and Canada. The suits were filed in response to a report published by Citron Research alleging securities violations.  Without admitting guilt or liability, Namaste will pay $2.15 million to settle claims in Canada and $2.75 million to settle claims in $2.75. Much of the payout will be funded through the company’s insurance, Namaste itself will only contribute $500,000. In a statement, interim CEO Meni Morim said that the settlement was a “win-win for Namaste Shareholders and business partners alike.”

Cannara Biotech

Cannara Biotech Inc. (CSE: LOVE) (FRA: 8CB) (OTCQB: LOVFF) announced the release of its financial results for the third quarter, ending on May 31, 2019. Lease revenue was $506,785 and lease operating costs were $221,157. The company’s operating expenses for the quarter was $150,429, amortization expenses were $150,429, and the net loss was $2.8 million. As of May 31, 2019, Cannara had a net working capital amount of $28.43 million, which should be sufficient to fund its planned construction and operating expenses for at least the next year. “Given the size of our facility and the self-evident need for greater supply in the marketplace, we are as committed and confident as ever in our mission to be an integral cannabis producer in the Canadian landscape, combining scale with premium quality,” said said Zohar Krivorot, President and CEO of Cannara.

SOL Global Investments Corp.

SOL Global Investments Corp. (CSE:SOL (OTCPK:SOLCF) ) (Frankfurt:9SB) announced a $2 million capital infusion its portfolio company CannCure Investments Inc. The capital infusion is aimed at accelerating expansion initiatives of companies owned, or soon to be owned, by CannaCure; including Northern Emerald and One Plant Dispensaries.



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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


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