RE:What an absolute sh*t deal.and Yet XLY claims they only hold 1.8 million shares?
Auxly holds 1.8 million shares in the company and an offtake agreement for 2,500 kg of cannabis per annum upon completion of the first phase of the facility. belgerath wrote: This is robbery on the part of Auxly.
The paid $4M for 3,755,868 common shares (value at market price of $1.2M), 50% stream on the current facility, a ROFO on the remaining 50%, a right to finance a percentage of the next facility (god can only imagine what those terms look like), AND the right to finance ALL future expansions.
I'm honestly blown away at how horrible this deal is. This company can never be bought out or scale up based on those terms.