Among the many sectors that have made a comeback in the stock markets this year, the comeback made by the cannabis sector has been quite notable.
Many of the cannabis stocks have rallied strongly in 2021 and in recent days, it is the Auxly Cannabis Group Inc (OTCMKTS:CBWTF) stock that has emerged as a notable gainer.
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Auxly Cannabis Group Inc (OTCMKTS:CBWTF) has been on an impressive run over the course of the past two weeks and during that period it has delivered gains of as much as 40%. Thursday CBWTF pulled back nearly 20%, so eyes will be on it Friday to see if it can get back on track.
One of the more important triggered behind the rally in the stock came about earlier this week when the company made a key announcement.
On Monday, Auxly announced that it successfully completed the bought deal public offering and raised as much as $20 million in fresh capital. It is a significant development for the company and the excitement among investors is understandable.
In this particular offering, Auxly offered as many as 54,395,000 units in the company for $0.37 each. This also included the full exercise of the overallotment option from Auxly. Cantor Fitzgerald Canada Corporation and ATB Capital Markets led the whole operation and worked as both co-lead underwriters as well as book-runners.
The units in question are made up of one common share in Auxly and half of a common share purchase warrant.
One warrant is going to give the holder the opportunity to get one common share of the company at the exercise price of $0.46 up until 36 months from the day the offering closed.
It has also been revealed by Auxly that the fresh capital is going to be used by the company for working capital purposes and other reasons that had already been enumerated in the prospectus for the offering.
The closure of the offering has naturally given rise to a certain degree of optimism around the company. It remains to be seen if the stock can maintain its momentum over the coming days.
Disclaimer: We hold no shares of CBWTF stock