Can Auxly Stock Really Become Next Year’s Biggest Pot Stock Success?

Auxly Stock

Auxly stock is down 25% since the beginning of September, despite predictions that Auxly Cannabis Group (TSXV:XLY) (OTCQX:CBWTF) could be the fastest-growing pot stock of 2020. So, can it really live up to the hype?

Projected 3000% Increase in Sales

Many analysts have singled out Auxly stock to be the fastest-growing pot stock on the market next year, and given its projected revenue and a string of recent good news from the company, it might just meet those projections. Auxly sales for this year are projected to be just $5.8 million CAD; however, that could jump to as much as $184.3 million CAD in the next 12 months. That’s an eye-watering increase of 3,056% and one that’s very hard for investors to ignore.

Capitalize off Cannabis
Sign up now to start receiving our investing insights for FREE!

 

The reason Auxly Cannabis Group is expected to gain so much in 2020 is as a result of many of its major partnerships and operations only coming into full effect next year. For example, the majority of the company’s production will come from its joint venture with Sunens to build a 1.4 million square foot greenhouse in Ontario, and this will not be licensed and operational until Q2 next year. Auxly stock could be further boosted by a partnership with hemp farmers on Prince Edward Island, which will see the company receive all the hemp produced at a 300-acre farm.

>> Organigram Stock in the Red Despite Excellence in Manufacturing Award

Auxly Stock Boosted By Imperial Brands Deal

The biggest benefit for Auxly is expected to come from a recently inked deal with British tobacco giant Imperial Brands (OTCQX:IMBBF), worth $123 million USD. This partnership will give the Vancovuer pot company access to Imperial’s global licenses for its vaping technology. In exchange, Imperial will receive a 19.9% stake in Auxly stock at a price of $0.81 per share, which is significantly higher than Auxly’s current value of $0.56.

This capital investment should go a long way to helping Auxly Cannabis Group realize its ambitions for 2020, as it looks to expand into the vaping market, which is expected to grow significantly in the legalization 2.0 market. Whether Auxly stock can live up to the title of 2020’s fastest-growing pot stock remains to be seen, but the company certainly looks well-positioned to do so.

>> Read More Auxly News

Featured Image: Canva