RE:Automation About bloody time!! Two years to get their shyte together on this is just friggin ridiculous! Progress on automation has been a slow a painful process for Auxly.
Full automation at Leamington is a welcome development for certain. That said, they still haven't got the packaging equipment dialed in yet. Regular updates in throughput rates would be nice to see.
That said, the previous discussions of delays in delivery and installation of equipment have all centered around the Kolab Project / Auxly Ottawa facility. The Q4-MD&A
https://auxly.com/wp-content/themes/auxly2018/media/2022Q4/MDA_Q4-2022.pdf
published three days prior to Auxly's Q4 presentation references equipment progress at Ottawa. as per pages 6 & 7.
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Auxly Ottawa
Over the past two years, the Company undertook new capital projects to increase pre-roll production volumes and output from the Auxly Ottawa facility through the purchase, installation and commissioning of automated manufacturing and packaging equipment and minor associated building alterations. Supply chain issues resulted in significant delays in receipt of both the manufacturing equipment and the technical support required to complete commissioning for full scale production. The pre-roll packaging automation equipment is operational and the Company expects to see continued increases in production in Q1 2023, however, the Company continues to work closely with the manufacturer to commission the equipment as it is currently operating below specification. For the year ending December 31, 2022, expenditures of approximately $2.5 million were made towards dried flower and pre-roll automation initiatives. We expect to incur expenditures of approximately $2.5-3.5 million towards capital projects focused on pre-roll cannabis filling machinery and dried flower and pre-roll packaging automation throughout 2023.
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As for Leamington the MD&A is a little less specific regarding automation.
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Auxly Leamington
For the year ended December 31, 2022, expenditures of approximately $4.0 million were made towards capacity expansion, equipment and post-harvest automation. We expect to incur expenditures at the Leamington facility of approximately $2.0-3.0 million towards capital projects throughout 2023 to increase staff housing, implement alternate post-harvest drying methods and purchase equipment to support higher output from the facility.
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Combined with the information from the Investor Presentation it appears Auxly is moving forward with upgrading both facilities. ?
https://auxly.com/wp-content/themes/auxly2018/media/2022Q4/Q4%202022%20Presentation_vF.pdf
It seems extremely ambitious of Auxly to continue forward with both Ottawa and Leamington considering the present state of the Cannabis industry in Canada at this time.
The truth seems to wave like a flag at Auxly.
Leaving shareholders guessing seems to be a particular penchant of management here, of late.
Who knows what to expect next?
Nice pics though...
cheers