Auxly stock is in the green today after Auxly Cannabis Group (TSX:XLY) (OTCQX:CBWTF) announced it had received amendments to its licenses to begin selling cannabis extracts, edibles, and topical products to the Canadian market.
Auxly Stock Gains Ahead of 2.0 Market
The receipt of the amended licenses, through Auxly's wholly-owned subsidiaries Dosecann and Kolab, comes a week after "legalization 2.0" came into effect, opening up the cannabis market for the sale of derivative products. The Cannabis Regulations require cannabis companies to submit the necessary paperwork to sell such products at least 60 days before they go on sale, meaning Auxly customers can expect to see extracts and edibles hit shelves by mid-December. Auxly stock is currently trading up 1.4% during Thursday's trading.
Auxly Cannabis Group has also announced that it has submitted a total of 83 unique product stock keeping units (SKUs) to Health Canada for approval, including vapes, chewables, and chocolates. It is widely hoped that the availability of such products in the 2.0 market will stimulate an uptake in consumer demand and provide the cannabis industry with a much-needed lift after the struggles in the first year of legalization. Judging by the movements in Auxly stock today, investors appear quietly optimistic that this might just be the case.
"These amendments and notifications are necessary regulatory milestones that must be achieved by any company wishing to sell derivative cannabis products when the 2.0 market begins later this year. [...] Auxly is able to launch its portfolio of branded cannabis products as soon as legally permitted by the regulations. This is an important step in executing our route-to-market strategy and introducing Canadian consumers to our incredible products,” said CEO Hugo Alves. Auxly shares are trading at $0.71 this morning.
Next Year's Pot Stock Success Story?
Earlier this month, we reported that analysts were predicting Auxly stock to be next year's breakout pot stock success, and today's announcement looks like it might just follow through on those predictions. Auxly Cannabis Group 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.
Featured Image: Canva