Auxly Cannabis Group Inc T.XLY

Debt

[settoretire]

What Is Auxly Cannabis Group's Debt? 

The image below, which you can click on for greater detail, shows that at March 2022 Auxly Cannabis Group had debt of CA$175.6m, up from CA$116.9m in one year. However, it does have CA$16.4m in cash offsetting this, leading to net debt of about CA$159.1m. 

[SCQuin]

The increase is related to the Sunens takeover?

[settoretire]

I don't care where you think the debt came from. NO VIABLE COMPANY can sustain that much debt and stay in business. If Auxly doesn't show a road to positive cash flow this ( latest Q3) quarter, they are "DONE", no if ands or buts.

[happyInvestor1]

assets 417,460,000 - liabilities  247,000,000 = 170,000,000 in green. Yes, we need to get more revenue but were not near bankruptcy. https://auxly.com/wp-content/themes/auxly2018/media/2022Q1/FS_Q1-2022.pdf

[UniqueKitty]

Auxly is not about to fold but they do have their work cut out for them.   Auxly does have a debt ratio in excess of 45% of assets. That is high, so 'settoretire' has a point. This is commonly considered unsustainable but what offsets this is an interest rate of only 4% on the lions share of that debt. This helps to balance the scale compared to others in the industry who are

[happyInvestor1]

Outstanding post. Thank you, Chris

[Teamee]

WallStreet Journal may know her story of debts? https://www.wsj.com/market-data/quotes/CA/XTSE/XLY/financials/annual/balance-sheet T:XLY - AUXLY CANNABIS GROUP INC - https://auxly.com 15:30:04 EDT Live Quote  Sym-X Bid - Ask Last Chg %Ch Vol $Vol #Tr Open-Hi-Lo