Auxly Signs $25M Financing Deal

Auxly Cannabis Group Inc. (TSX.V: XLY) CBWTF has obtained $25 million in financing after entering into an agreement with an undisclosed institutional investor.

The Toronto-based company plans to use net proceeds to boost the introduction of so-called cannabis 2.0 products by adding capacity and increasing automation via its subsidiary Dosecann.

Earlier this month, Dosecann — a Canadian developer and manufacturer of innovative cannabis products — signed a three-year supply agreement with an online medical cannabis platform, Medical Cannabis by Shoppers Drug Mart, making its products available to Canadian users.

“Auxly’s focus on ‘Cannabis 2.0’ and our ability to execute on delivering a compelling portfolio of branded cannabis products that resonate with and delight their chosen consumer segments has attracted significant investment interest, even in a difficult market and during a time of general uncertainty,” Auxly CEO Hugo Alves said in a statement.

Pursuant to the terms of the deal, the convertible debentures will be issued in tranches when sought by the company, starting with an initial tranche of $1.25 million.

With an expiration date of 24 months from the time they are issued, debentures bear interest at a rate of 7.5% per annum payable every six months, on June 30 and Dec. 31.

Related Links:

Cannabis 2.0: The Companies Entering Canada's New Edible, Concentrate, Topical Market

Analyst Dives Into Cannabis 2.0, Says There Are Fewer Suppliers And A More Concentrated Market

Photo courtesy of Auxly