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Auxly Cannabis Group Inc T.XLY

Alternate Symbol(s):  CBWTF

Auxly Cannabis Group Inc. is a Canada-based consumer packaged goods company in the cannabis products market. The Company is focused on developing, manufacturing and distributing branded cannabis products. Its brands include Parcel, Back Forty, Foray, Dosecann and Kolab Project. It provides various products, including vaporizers, edibles, dried flowers, pre-rolls, capsules and oils and concentrates. The Company also conducts wholesale bulk sales of dried cannabis to various licensed producers in Canada. Its subsidiaries include Auxly Charlottetown Inc., Auxly Ottawa Inc., and Auxly Leamington Inc. The Company’s primary Cannabis 2.0 Product development, manufacturing and R&D activities are conducted by its subsidiary Auxly Charlottetown Inc. at a cannabis processing facility located in Charlottetown, Prince Edward Island. Auxly Ottawa Inc. holds licenses for cultivation and processing and conducts the Company’s primary dried flower and pre-roll manufacturing.


TSX:XLY - Post by User

Bullboard Posts
Comment by archdiamondon Jan 20, 2018 12:57pm
200 Views
Post# 27401015

RE:RE:RE:RE:RE:230 thousand kilos not including Aph deal?

RE:RE:RE:RE:RE:230 thousand kilos not including Aph deal?
archdiamond wrote:
JustASimpleGuy wrote:
archdiamond wrote:
JustASimpleGuy wrote:
jubatus1 wrote: https://wheatonincome.com/investors/


I don't think it does, however the Broken Coast expansion needs to be subtracted from the figure too. Not sure how that balances out.


We don't know yet if we have lost the Broken Coast deal. It's s better possibility that the deal stands with the APH take over of Broken Coast considering the terms CBW and APH are on. There has been no news release of the material change of CBW looking this contract. 

I'd bet we still have that stream. 


It's still possible, and maybe I'll even backtrack from my gut feeling. The Aphria NR did state it's given Broken Coast the green light to go ahead with an expansion project. I suppose that could be the CBW Broken Coast agreement.

So Broken Coast gets a nice payout from the acquistion, Aphria gets access to Broken Coast genetics and CBW fullfills its obligations towards the expansion and retains 49% equity. And as a bonus CBW also has the agreement with Aphria for 60,000 Kg through 2/1/22.

That would be a nice win-win-win for all concerned!


Indeed it would, I also reread that news release and noticed Broken Coast was 80% owned by the main three partners. Who gets the other 20% of the APH shares and cash in the proposed deal? 
We know we own at least 10% of that interest. 10% of those shares are now worth 33M and at least 1M from the cash part as well for CBW. This still leaves a 10% interest of BC unaccounted for.


Here is the part of the news release I'm referring too... Who gets the other 20%??

Transaction summary

The total Transaction value is approximately $230 million, to be paid with up to $10 million in cash and the remainder in Aphria shares, and is subject to customary closing adjustments. Shares issued to Broken Coast shareholders will be issued at a deemed price of $ 15.09 representing the 20-day VWAP of Aphria at market close on the business day immediately prior to the signing of the parties initial non-binding letter of intent. Each of the three co-founders of Broken Coast, who cumulatively hold over 80% of the outstanding capital, will remain with the pro-forma company.

The deal remains subject to certain other customary closing conditions for the benefit of Aphria, including the conditional approval of the TSX, applicable regulatory approvals and the satisfaction of certain customary closing conditions. Aphria does not require a shareholder approval for the Transaction.

The Transaction is anticipated to close by January 31, 2018.


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