Auxly Secures $3M In Financing, Looks To Enhance 'Cannabis 2.0' Products

Auxly Cannabis Group Inc. (TSX.V: XLY) CBWTF announced Tuesday it has secured an additional $3 million in financing.

The Toronto-based company completed the third tranche of its unsecured convertible debenture standby facility with an institutional investor.

Auxly agreed to gain funding by selling its unsecured convertible debentures in the amount of up to $25 million.

The company will issue convertible debentures at a conversion price of 38 cents per common share.

The investor acquired warrants to buy more than 4.3 million Auxly shares at 46 cents per share.

The debentures will mature on June 8, 2022, and carry interest of 7.5% annually, payable every six months starting June 30.

Auxly intends to utilize the net proceeds to enhance its capacity and automation in the launching of so-called Cannabis 2.0 products via its subsidiary, Dosecann LD Inc.

In April, Dosecann inked a supply agreement with Medical Cannabis by Shoppers Drug Mart.

The deal allowed Auxly’s subsidiary to supply cannabis products via the online medical cannabis platform, making them available to Canadian consumers.

Auxly operates globally, by supplying medical, wellness, and adult-use markets with cannabis products.

According to a recent financial report, the company generated record net revenue of roughly $10 million in the first quarter of 2020.