Auxly Obtains $3M In Funding, Issues Next Tranche Of Debentures

Consumer packaged goods company Auxly Cannabis Group Inc. (TSX.V: XLY) CBWTF secured an additional $3 million in funding.

The agreement was worked out through a previously announced unsecured convertible debenture standby facility.

Under the $25 million financing deal, Toronto-based Auxly agreed to issue convertible debentures to the investor in tranches, with an initial tranche of $1.25 million.

The latest tranche, which was announced Friday, includes convertible debentures issued to an indisclosed investor at $0.305 per the company's common share.

The investor also obtained warrants to buy some 5.4 million Auxly's common shares at $0.366 per share.

Each convertible debenture carries interest at a rate of 7.5% per anum, payable every six months, starting June 30. Its maturity date is June 26, 2022.

Auxly already secured $3 million in financing earlier this month, by completing the third tranche of the debenture facility.

Meanwhile, the company's quarterly earnings report revealed the company had reached a record revenue of $9.9 million during the first three months of the 2020 fiscal year.

The year-over-year revenue growth of 1100% represents the increase in sales of the so-called Cannabis 2.0 product from Auxly’s subsidiary, Dosecann. 

Courtesy photo