As we get rolling in 2019, the potential to sort out the wheat from the chaff drives all the action, and the question right now is whether or not Auxly Cannabis Group Inc (OTCMKTS:CBWTF) will rise as new money flows back in. Part of that narrative will come down to how the market digests new catalysts. For example, the company just announced that, further to its previous releases, it has completed the acquisition of 80% of the outstanding common shares of Inverell S.A.
According to the release, “The Transaction positions the Company as a leader in the global CBD economy with a highly efficient, low-cost source of cannabinoids for international distribution, including through the Company’s strategic partnership with ICC International Cannabis Corporation Inc. (CSE: WRLD) which provides the Company with access to 16 markets through a network of 35,000 pharmacies. Importantly, the low cost, high purity CBD produced by Inverell gives the Company a long-term and stable supply of CBD to support the research, development, and manufacturing of cannabis-derived products at Dosecann Inc., the Company’s wholly-owned Licensed Processor facility located in Prince Edward Island, Canada.”
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 that, further to its previous releases, it has completed the acquisition of 80% of the outstanding common shares of Inverell S.A.
The chart shows 19% during the past month in terms of shareholder gains in the listing. Moreover, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed 22% beyond its prior sustained average level.
Hugo Alves, President and Director of Auxly Cannabis Group, commented: “We are incredibly pleased with progress that Inverell has made on the cultivation of its 2019 crop of CBD-rich hemp and on the broader development of the business as a stand-alone entity in the Auxly platform. In a very short period, Inverell has exceeded its 2018 planting target of 150 hectares of hemp plants and has made significant strides forward on the development of its world-class extraction facility located in the Parque de las Ciencias. We continue to believe that the low cost and high volume access to CBD molecules, through our ownership in Inverell, positions Auxly to be a leader in the global value-added cannabinoid-based product markets.”
At this time, carrying a capital value in the market of $404.26M, CBWTF has a significant war chest ($236.9M) of cash on the books, which compares with virtually no total current liabilities. CBWTF is pulling in trailing 12-month revenues of $512K. However, the company is seeing recent declines on the top-line on a sequential quarterly basis, with revenues falling flat as of its latest reporting period. 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.