Two days after Bruce Campbell, who is a portfolio manager, said Auxly Cannabis Group (TSXV:XLY) (OTCQX:CBWTF) is making smart deals, the British Columbia-based company announced the signing of a term sheet for a syndicated credit facility. It is yet another move in the company’s model to secure leading research and development infrastructure. On the news, Auxly stock is up nearly 2%.
Here’s what we know.
Auxly Stock Trades Up on News of $84 Million Term Sheet
Ever since Imperial Brands (OTCQX:IMBBY) announced in July that it will be investing $123 million in the company, Auxly stock has garnered significant attention. Of course, it has its bad days; but the deal has put a spotlight on the company, with Bruce Campbell now saying from a business perspective, Auxly is the way to go. And based on yesterday’s announcement by the company, that seems like a reasonable statement.
On Wednesday, August 14, Auxly Cannabis Group announced that its joint venture partner, Sunens Farms Inc., signed a term sheet for $84 million for a syndicated credit facility. All of the proceeds from the Credit Facility will go toward funding phase one of the Sunens facility; it is expected to be completed this winter. More details on the deal can be read here.
CEO of Sunens, Peter Quiring, had the following to say: “Construction of Sunens is well underway and we couldn’t be more excited to complete the build-out of phase one of the project, which will give us over one million square feet of greenhouse space and the ability to deliver approximately 100,000 kgs of cannabis annually commencing on or about the second quarter of 2020.”
At the time of writing, Auxly stock seems to be benefitting from the news. As of 10:44 AM EDT, Auxly stock is trading at $0.6902; this puts Auxly stock up 1.50%.
What do you think about the news? Do you think it will help Auxly stock finish the quarter strong? Let us know your thoughts in the comments below.
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