RE:RE:RE:RE:RE:RE:Trading Pattern
SCQuin wrote: Kitty...what funding options do you feel Auxly has to get to the end of 2022 and beyond? Free cash flow was always too much of a challenge, there are no assests left to sell, OCS and BC have fallen out of bed.....??
Auxly ended Q2-2022 with just over C$20mil cash and equivalents. They just added C$10mil more in Q3 with the sale of the Robinsons/Annapolis facilities.
The Q2-2022 MD&A states, next 12 months are funded.
With operations generating positive cash flow, production continuing to ramp to full scale with facilities that are built out for the most part, the need for additional 'financing' is the question.
Tell me SCQuin, how much more 'financing' do you think Auxly will need to see their way through 2022.?
As for sales falling off Auxly's sustained growth in NET Revs flies in the face of the market share data. When looking at growth it is the over all market growth that dominates the equation. Auxly's percentage of market share may have slipped a bit but the total Canadian market increased by 10% in Q2-2022 vs Q1 and Auxly increased NET Revs by 31% over Q1.
Gross margins improved to 36% in Q2. That should continue to improve with more automation coming online.
Ultimately , Yes, AUXLY's sales group need to step up their game and sell more!
With New SKU's in hand and more still to come they have done it before.
It's a simple plan really.
Sell more grass. Make more cash.
I expect more streamlining of operations in the future. Those changes could provide future opportunities to recover funds for redistribution. This would be further down the road though and Inverell is still for sale. Not that I'd expect Inverell to fetch a huge price tag, it is an open option.
Tell me SCQuin, how much more financing do you actually think Auxly is going to need before turning profitable?
cheers