Auxly stock is making ground on Thursday morning after Auxly Cannabis Group (TSXV:XLY) (OTCQX:CBWTF) finalized its first shipment from Okanagan-based cannabis producer Lotus Ventures Inc (CSE:J) (OTCPK:LTTSF).
Auxly Stock Up 12% Following Supply Deal
Auxly Cannabis Group had entered into an agreement with Lotus Ventures back in September 2018, which entitled Auxly to purchase the first 50% of Lotus's cultivation at a fixed price, with a right of first offer to purchase the remaining 50% at market prices. Auxly has agreed to purchase 100% of the initial crop and maintains an ongoing interest in Lotus's high-quality flower production. Auxly stock is up over 12% following news of the deal.
In a further boost for holders of Auxly stock, Lotus has said that its inaugural crop surpassed expectations in terms of yield, as well as meeting all quality control measures. On this initial batch, Lotus Ventures has said that the average THC content is about 19%, while one strain tested as high as 22.6%. The company has said that it will continue to focus on cultivating high-THC content strains in future batches now that it has achieved a standardized growing environment, which Auxly management will be sure to keep a keen eye on.
Annapolis Valley Expansion
Auxly Cannabis Group is continuing its venture into innovative cannabis cultivation techniques by announcing plans for a massive cultivation project in the heart of Nova Scotia’s Annapolis Valley, which will be operated by its subsidiary Robinsons Cannabis Inc. The Annapolis Valley is actually well-known for high-quality grape crops, which are used in the wine industry, meaning there is a wide range of soil types and microclimates ideal for cannabis cultivation. Auxly shares are currently trading at $0.73 in Toronto.
“Robinsons OG will give us the ability to grow a broader range of Robinsons’ genetics, using Robinsons’ cultivation methodologies, and take advantage of the unique terroir of the Annapolis Valley to bring Canadian consumers Robinsons branded cannabis products, all produced with an unwavering commitment to quality and craftsmanship,” said CEO Hugo Alves. With the site expected to yield 200 kg of high-quality product per acre in 2020, next year looks like a big year for Auxly stock and its investors.
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