RE:Auxly going into 2020 with $0.91 target !!! FWIWsrtman03 wrote: Outlook for 2020 In its MDA, Auxly highlighted its readiness to enter the Cannabis 2.0 market. It aims to start on the first day of permitted sales in Canada. The company also expects to start selling its derivative products in all Canadian provinces except Qubec from December 16. Subsequently, the company anticipates its associated revenue to rise from December and increase throughout 2020. The company expects to benefit from higher orders from provinces, an expanding consumer pool, customers switching from dried cannabis to derivative products, and better retail infrastructure. Auxly Cannabiss cultivation capabilities According to its investor presentation, Auxly expects 100,000 kilograms in annual output from its portfolio of cultivation assets. The large supply will be from recently acquired Inverell, its ongoing Sunens Farms project, and PEI (Prince Edward Island) hemp farmers. Auxly is also developing cannabis flower brands through its wholly-owned subsidiary, Kolab Project, and its ongoing Robinsons Outdoor Grow project. The company has diversified its cannabis supply sources across ten projects through partnerships and targeted investments. This diversification has helped reduce the operational risk associated with having a single major cannabis source. According to Auxlys MDA, Inverell is a leading cultivator in Latin America. In this years growing season, the company cultivated 18 tons of hemp biomass from 190 hectares of planted hemp. Auxly has also faced some delays in the ongoing Sunens project, a 1.1 million-square-foot greenhouse facility in Leamington, Ontario. The company expects to complete licensing the facility in 2020 and to start commercial operations by next years fourth quarter. Auxly also became the financial sponsor of a PEI hemp farming cooperative in August. The company can now purchase up to 100,000 kilograms of hemp biomass at a better price than wholesale market rates. This hemp was cultivated from 300 acres of land. Auxly Cannabiss capital position At the end of the third quarter, Auxly had 349,000 Canadian dollars in cash and cash equivalents. It had 187,443 Canadian dollars in debt. Despite its low cash balance, the company is well positioned to pursue future growth opportunities. First of all, in September, Auxly announced the closing of $84 million in syndicated credit facilities with BMO (Bank of Montreal) by its joint venture partner, Sunens Farms. In September, Imperial Brands also completed its investment transaction of 123 million Canadian dollars as debentures in Auxly. These debentures are convertible into a 19.9% ownership stake in CBWTF. Analysts recommendations and target price Currently, the two analysts covering Auxly stock on the CVE both suggest buy. Their target price for the stock of 0.93 Canadian dollars implies a 32.86% upside from the stocks last closing price. In October, the analysts average target price for Auxly was 1.63 Canadian dollars.
BMO and Imperial have invested Millions.....so are they smarter than I? Patience is needed 2020 should do well for Auxly :)