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CBWTF Stock Struggles Despite Robinson’s Subsidiary Getting Green Lit

Auxly stock

Last week, cannabis streaming company Auxly Cannabis Group (TSXV:XLY) (OTCQX:CBWTF) had another subsidiary greenlit to produce cannabis. Shares saw a brief upswing after the news was announced, but today, CBWTF stock is in the red again.

Selling for $0.63 USD and down 3.52% at present, is there any further upswing potential from this news?

CBWTF Stock and Auxly

As a cannabis streaming company, Auxly Cannabis Group provides funding for cannabis companies to establish themselves. It invests capital to allow for facility expansions, operations, and initial construction. In exchange, it receives minority equity interests and a cut of the cultivation production.

Last week, its wholly-owned subsidiary, Robinson's Cannabis Inc, was granted cultivation and processing licenses by Health Canada. This means Robinson's can begin cultivation at its already fully constructed 27,700 square-foot facility in Kentville, Nova Scotia.

CBWTF Stock: Limited Edition Cannabis

What makes Robinson's Cannabis a potential success story is its focus on quality. Aiming its flower at marijuana connoisseurs, the company wants the "attention of luxury cannabis consumers." Further, it says its operations are "built on a devotion to uncompromising quality and a premium cannabis experience."

Quality is so premium, in fact, that the company is planning to release a limited amount of product to the market annually—only 1,100 kg.

In a highly competitive market where brands are literally out-boasting each other with six-digit annual yield approximations, this "limited supply" may make you scratch your head. It is a bold move but could be a clever one.

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Boutique?

Targeting a niche in a crowded space is, quite frankly, the only way to survive when you are a small company. If Robinson's can prove its mettle and produce a product worthy of limitation, then CBWTF stock may return in kind on this venture.

Being "boutique" has its merits:

CBWTF Stock

It is early days for Robinsons, so it's impossible to know where this venture will take Auxly stock. But with CBWTF stock half the value of what it was this time last year, the company needs a boost.

Auxly Cannabis Group is a "waiting game" investment. Its unique business model gives CBWTF stock dynamism and diversity. That's a good thing: with its fingers in multiple pies, it has multiple revenue streams. Unfortunately, the cannabis industry is still so young, meaning the company has barely seen returns on its investments yet. But that certainly doesn't mean it won't.

Do you think Robinson's can bring a boost to CWBTF stock?

>> Read More Auxly News

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