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Auxly Decreases Stake In Inner Spirit, Uses Proceeds To Fund Operations

September 18, 2020 12:21 pm
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Auxly Cannabis Group Inc. (TSX.V – XLY) (OTCQX: CBWTFconfirmed Friday it decreased its stake in Inner Spirit Holdings Ltd. from 12.9% to 9.8%.

The Toronto-based company opted to dispose some 6 million common shares of Inner Spirit and $400,000 worth of its convertible debentures.

In return, Auxly gained around $850,000 in gross proceeds, which it intends to utilize to fund capital and operational expenditures for its core assets.

The disposition was closed via the Canadian Securities Exchange.

The company currently owns and controls some 19.95 million common shares, 3 million warrants, and 600,000 options to purchase common shares of Inner Spirit.

Auxly CEO Hugo Alves said the company is "incredibly supportive of Inner Spirit and are committed to our continued relationship as they lead the market in opening retail cannabis stores across the country."

Meantime, according to its latest financial report, the company's revenue spiked 200% year-over-year to $8.6 million in the second quarter of this fiscal year.

In addition, cannabis net revenue accounted for 79% of the total revenue, while research revenues from KGK amounted to $1.8 million.

Over the same period, Auxly's debt increased by 9% to $104 million.

Alves was satisfied with cannabis sales during the quarter, adding they are dedicated to executing their business strategy while being "committed to doing so with the highest degree of fiscal discipline."

Courtesy image

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