The Roller Coaster Ride for Auxly Cannabis Group Inc (OTCMKTS:CBWTF)

The Roller Coaster Ride for Auxly Cannabis Group Inc (OTCMKTS:CBWTF)

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One stock that continues to be a mystery on a technical and fundamental basis is Auxly Cannabis Group Inc (OTCMKTS:CBWTF). Adding to that sense, the company just announced Robinsons Outdoor Grow, a large scale, high-quality outdoor cultivation project located in the heart of Nova Scotia’s award-winning wine region of Annapolis Valley.

According to the release, “Robinsons OG is uniquely located in a region that is ideal for outdoor cannabis cultivation given its diverse soil types and microclimates; the same soil on which the Acadians grew hemp over 250 years ago. Located within 25 kilometers of Robinsons’ 27,700 square foot indoor facility, Robinsons OG is comprised of over 158 acres of land in Hortonville, Nova Scotia and offers road frontage and highway access, allowing for the potential future development of tourism and point of sale opportunities.”

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 Robinsons Outdoor Grow, a large scale, high-quality outdoor cultivation project located in the heart of Nova Scotia’s award-winning wine region of Annapolis Valley.

We’ve witnessed 1% added to share values of the stock over the past week of action. Moreover, the name has seen interest climb, with an increase in recent trading volume of 20% above the average volume levels in play in this stock over the longer term.

Hugo Alves, CEO of Auxly, commented: “We are thrilled to announce our Robinsons OG project. As you know, we are very excited to introduce Andrew’s incredible dried cannabis flower to discerning Canadian consumers and Robinsons OG provides us with the perfect platform from which to expand our Robinsons branded product offering. Under Andrew’s supervision, Robinsons OG will give us the ability to grow a broader range of Robinsons’ genetics, using Robinsons’ cultivation methodologies, and take advantage of the unique terroir of the Annapolis Valley to bring Canadian consumers Robinsons branded cannabis products, all produced with an unwavering commitment to quality and craftsmanship.”

At this time, carrying a capital value in the market of $303M, CBWTF has a significant war chest ($186.9M) of cash on the books, which is balanced by about $154.7M in total current liabilities. One should also note that debt has been growing over recent quarters. CBWTF is pulling in trailing 12-month revenues of $5.8M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 215.8%. As more color becomes clear on the name, we will review the situation and update our take. 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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