RE:RE:RE:Fascinating
SCQuin wrote: As I recall Auxly had a substantial SP increase in the days leading up to Q4....then it dropped (FAST) from 0.33 to right about where we are today. The lesson here is Q1 needs to show BIG improvement over Q4 or we are insolvent?
Not to nitpick SCQuin. Just for clarity, based on the $0.33 price you mentioned I'm pretty sure you're referencing the Q3-2021 Report back in November that set shareholders back based mostly on the unexpected 6mos delivery delay of automated equipment at Kolab Project. That equipment has since been delivered and installed but related cost improvements will only become apparent through Q2-2022 and beyond.
This Q1 we should see cost and margin improvements related to the 100% acquisition of Sunens and the shutdown of Robinsons operations. This is where we learn whether costs are coming into line with incoming revenues and spending is controlled.
Crazy days in the market overall means Auxly must become self-sufficient sooner than later.
On the upside Auxly has secured a low interest rate of only 4% on the debenture deal with Imperial Brands which represents the lion's share of AUXLY's outstanding debt.
As a result, AUXLY's exposure to higher interest is somewhat insulated.
Also Auxly has assets available for sale if they need to.
Most other LPs are not as well positioned.
The market is a bit 'spooky' right now. All kinds of crazy shyte going on.
Auxly just needs to remain focussed on making top quality products and selling a lot of them. To that point, Auxly's Q4-2021 MD&A stated Auxly had acquired all necessary permissions to advance sales into Quebec.
Quebec represents a significant portion of the Canadian market. I look forward to seeing a move in that direction in the near future.
Future forward.
cheers