Auxly Stock Regains Momentum: Key Developments to Watch

Auxly stock

Most cannabis stocks were pounded throughout the course of 2019 due to adverse situations with the industry, but in the new year, many stocks have managed to rebound, and one of those is Auxly Cannabis stock. Auxly stock has gained as much as 20% over the past couple of weeks, and due to that rally, it is worthwhile taking a closer look at the recent events in relation to Auxly Cannabis Group (TSXV:XLY) (OTCQX:CBWTF).

Last week, the company made a major announcement with regards to its debt situation, and that must have been one of the triggers behind the rally.

Repaid Convertible Debentures

Auxly announced that it had successfully made its repayment on the unsecured convertible debentures that were due on January 16. Last year, the company issued warrants to buy as many as 32,200,000 shares in Auxly. On January 16 this year, these warrants were delisted as well.

Auxly Cannabis Group may be one of the smaller outfits in the industry, but it offers a full range of cannabis 2.0 products. Its main investor, Imperial Brands (OTCQX:IMBBF), has also provided Auxly with the expertise to produce vaping products. Auxly has already released two brands.

>> How Pot Stock Investors Can Profit from Cannabis Legalization in Illinois

Auxly stock is now down 1% at C$0.66.

In its third-quarter financial results, Auxly generated revenue of C$1.6 million, much of which was due to research-related contracts. However, the company expects revenue to hit as much as $65 million in 2020 thanks to vape-related sales. It is currently one of the fastest-growing cannabis companies in the industry, but at the same time, it should be noted that Auxly Cannabis Group has also held back some of its cannabis for use on cannabis derivative products.

Due to the delay in the launch of derivative products by Health Canada, much of the company’s revenue is now expected to be generated this year. At the same time, many of the company’s royalty partners will make their deliveries in 2020, and many of its joint ventures are expected to bear fruit as well. The loss per share is also expected to drop this year.

Auxly stock has lost over 35% over the past year.

>> Read More Auxly News

Featured image: Canva

If You Liked This Article Click To Share