Auxly Cannabis Group Inc (OTCMKTS:CBWTF), one of the smaller cannabis companies in Canada, has been witnessing selling pressure in Tuesday’s session after the company posted its first-quarter results for 2019.
Some of the important highlights from the earnings report include the advanced stage of production at Auxly’s Dosecann plant, significant progress towards building of important infrastructural capabilities and most importantly, sales of dried cannabis flower for the first time.
Net Loss Widens
For the first quarter, Auxly Cannabis recorded a net loss of C$13.6 million, or $0.02 a share, worsened from a year loss of C$10.5 million, or $0.03 a share.
The Chief Executive Officer of the company, Chuck Rifice, also made an important announcement and stated that company is now all set to “have our initial range of derivative cannabis products completed and available for sale into the upcoming legal market later this year.”
Auxly Cannabis Group’s revenues have also been boosted by the acquisition of KGK and contributed half a million towards the overall revenues. It is a highly strategic acquisition and gives Auxly access to KGK’s extensive research capabilities.
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The company is engaged in producing high qualify, safe cannabis. In addition to that, the company has now announced that its production capabilities are going to be up there with some of the bigger players in the cannabis industry. It had invested in a range of cannabis growing companies in the past and then started producing on its own, which is why its capabilities could challenge many established company. The company has announced that it plans to produce 170,000 kilos of cannabis by 2021 through a combination of its own facilities and its partners.
Shares of Auxly Cannabis are down over 3% and now trading at $0.60 in early session on Tuesday. The stock has fallen over 20% since the beginning of this year. Over the past year, the stock has been trading within a range of $0.44 to $1.26. 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.