info Underlying developments driving Auxly Cannabis Group's growth isn’t the focus of this broad overview, however, take into account that typically a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one issue worth mentioning. Auxly Cannabis Group currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Auxly Cannabis Group's case is 46%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.