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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 EbbFlow88on Aug 31, 2020 3:15pm
124 Views
Post# 31480545

RE:RE:RE:RE:RE:RE:@mtb121225

RE:RE:RE:RE:RE:RE:@mtb121225In regards to interest, you can average out over next 6 months or 12 months but being close to 1 to 1 for gross profit to interest expense is not good. So it will likely improve but not materially. I was just using it to point out how much trouble they're in cash flow wise and servicing their debt. 

I just looked through their last 2 quarterly reports and didnt see anything for Beleave. Assuming they were a debtholder, there are tiers of debt holders and in the case of the bankruptcy top debtors get paid first. I doubt Auxly would want to invest more much needed cash to take over those assets. They have enough trouble with their own.

Without getting into a tit for tat, how does this company survive and make retail investors money from here? Considering their cash position and quarterly burn rate, what do their sales need to be to make an operating profit a reality? Maybe I'm wrong, but because cash flow positive or even surviving will be a tall task.
Bullboard Posts