Auxly Cannabis Group Inc (OTCMKTS:CBWTF) Starts Playing the New Game

Auxly Cannabis Group Inc (OTCMKTS:CBWTF) Starts Playing the New Game

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The game for the cannabis space has clearly become all about intercontinental expansion at this point, as further manifested by Auxly Cannabis Group Inc (OTCMKTS:CBWTF). The company just announced that it has received approval from the Secretaría Nacional para la Lucha contra el Lavado de Activos y el Financiamiento del Terrorismo, the government body overseeing foreign direct investments in Uruguay, for the Company’s acquisition of 80% of the issued and outstanding common shares of Inverell S.A. The SENACLAFT approval represents the final Uruguayan regulatory milestone required for the closing of the Transaction.

According to the release, “Inverell is a federally licensed Cannabis Operator based in Montevideo, Uruguay. Led by Dr. Raúl Urbina, Inverell is a large-scale outdoor producer of hemp plants for CBD extraction operating on an initial footprint of approximately 300 hectares. Inverell has recently commenced the planting of its feminized seeds on 150 hectares (approximately 16.1 million square feet) which it expects to complete by early December and harvest in mid-April of 2019.“

Auxly Cannabis Group Inc (OTCMKTS:CBWTF) trumpets itself as an investment company that seeks to provide investor returns through streams and capital appreciation in the Canadian cannabis industry.

The company operates as a cannabis streaming company. It provides funding for cannabis facility expansions, operations, and initial construction in exchange for minority equity interests and a portion of the cultivation production.

The company was formerly known as Knightswood Financial Corp. and changed its name to Cannabis Wheaton Income Corp. in May 2017. Cannabis Wheaton Income Corp. was incorporated in 1987 and is based in Vancouver, Canada, and became known as Auxly Cannabis Group Inc over recent months.

According to company materials, “Auxly Cannabis Group is a collective of entrepreneurs with a passion for the cannabis industry past, present and future. Our mandate is to facilitate growth for our partners by providing them with financial support and sharing our collective industry experience. Our partners all have different visions, voices and brand values, and all share a common goal—to build a world-class industry based on ethics, diversity, quality and innovation.”

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As noted above, CBWTF just announced it has received approval from the Secretaría Nacional para la Lucha contra el Lavado de Activos y el Financiamiento del Terrorismo, the government body overseeing foreign direct investments in Uruguay, for the Company’s acquisition of 80% of the issued and outstanding common shares of Inverell S.A. The SENACLAFT approval represents the final Uruguayan regulatory milestone required for the closing of the Transaction.

In all, we’ve witnessed 28% tacked on to share pricing for the stock in the past week, but this action is running counter to the larger trend in the name. Moreover, the company has registered increased average transaction volume recently, with the past month seeing 57% above its longer-run average levels.

Hugo Alves, President of Auxly commented: “I couldn’t be more excited to announce the closing of the Inverell transaction. Not only is Auxly acquiring an incredible project, but we are welcoming one of the world’s foremost experts in large scale outdoor cultivation and the extraction of high value molecules from plants into the Auxly family. I speak for myself and everyone at Auxly in saying that we are thrilled and honored to have Raul and the whole Inverell team as our friends and business partners. Inverell is a hugely important asset for Auxly and our strategic vision. Through Inverell, Auxly is perfectly poised to play a leading role in the global CBD economy and establish itself as a leading manufacturer of value-added cannabinoid-based products for domestic and international markets. Our ability to exercise strict QA/QC controls along every point of the supply chain from cultivation to extraction to product manufacturing, all within jurisdictions where cannabis is federally legal, ensures that we will be able to meet the quality assurance and supply chain demands of increasingly sophisticated and institutional purchasers. I love it when a plan starts to come together and the acquisition of Inverell is a big piece of our plans so today is a very exciting day for our company.”

Currently trading at a market capitalization of $538.15M, CBWTF has a significant war chest ($295.8M) of cash on the books, which stands against virtually no total current liabilities. The company is pre-revenue at this point. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $CBWTF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $CBWTF, either long or short, and we have not been compensated for this article.

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