CBWTF stock has had a rollercoaster year—hitting highs of $0.77 and lows of $0.54 USD. Currently, shares are selling for a year-to-date average of $0.60. It's hard to predict which way Auxly Cannabis Group (TSXV:XLY) (OTCQX:CBWTF) shares will go next, but one thing that could sway stock skyward is the company's strong focus on cannabis derivatives.
Let's check this out.
CBWTF Stock and Derivatives
Canada's cannabis streaming company and cultivator Auxly just released its fiscal Q1 results at the end of May. The company's results caused shares to drop. Its net loss widened significantly from the prior year period; 31% significantly. But the company showed a welcomed focus on expanding its business to focus on the derivative cannabis market, which goes live in October this year.
Company CEO Chuck Rifici says the company is now on track to “have [its] initial range of derivative cannabis products completed and available for sale into the upcoming legal market later this year.”
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He further says that the company expects to make real revenue when this market kicks off:
"[M]aterial revenue generation will coincide with the legalization and regulatory approvals for derivative cannabis products."
With the higher margins that come with derivatives, focusing its efforts here should lead to healthy profits down-the-line for Auxly Cannabis Group.
So, although its sales in this quarter were fleeting, the company spent a lot of capital on expanding operations. Those looking for the silver lining in CBWTF stock should consider the company's next target—the derivatives product market.
Beyond Derivatives
Beyond derivatives, Auxly is focusing on its joint venture partner Sunens. It plans to complete its cultivation facility and market its marijuana brands.
Overseas, Auxly owns a majority stake in Uruguay's Inverell and a 100% stake in Inverell's sister company Zeratol. These are both hemp-growing operations. The aim is to extract CBD from the hemp in order to increase sales of CBD-infused products and oils in the international markets.
Do you think CBWTF stock has a bright future ahead? Is this a consideration for those willing to hold?
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