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Auxly Secures $12M In Financing

November 24, 2020 1:48 pm
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Auxly Secures $12M In Financing

Auxly Cannabis Group Inc. (TSXV:XLY) (OTCQX:CBWTF) has secured $12 million in financing.

The Toronto-based company confirmed Tuesday it has upsized the previously announced bought-deal offering of its units to 40 million units at 30 cents per unit.

Each unit includes one of Auxly's common share and one-half of its one common share purchase warrant.

Auxly also said it has granted the underwriter an option to boost the offering size by adding a number of units equal to 15% of the total number of units issued under the offering. 

The company disclosed it would utilize the proceeds to fund working capital as well as for general corporate purposes.

According to the company's update, the offering would be closed by mid-December or once Auxly obtains all regulatory approvals.

Meanwhile, on the heels of reporting a year-over-year revenue spike of 200% for the second quarter, Auxly opted to decrease its stake in Inner Spirit Holdings Ltd. from 12.9% to 9.8%.

The company disposed some 6 million Inner Spirit's shares and $400,000 worth of its convertible debentures to secure roughly $850,000 in gross proceeds, intended to fund its capital and operational expenditures.

Last month, the company's founder and former CEO Chuck Rifici stepped down from the board's chairman's position. Genevieve Young, who served as Independent Director on the Board, agreed to chair the board.

Young also serves as President and Chief Operating Officer of Canada's Global Public Affairs.

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