09:34:53 EDT Tue 22 Sep 2020
Enter Symbol
or Name

Login ID:

Cannabis Summary for Nov. 22, 2019

2019-11-22 21:17 ET - Market Summary

This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

The Canadian Securities Exchange Composite Index lost 10.62 points to 421.02 Friday, ending a turbulent week that saw the index hit a high of 438.98 and a low of 388.35; the index ultimately gained 15.16 points on the week. Auxly Cannabis Group Inc. (XLY) fell four cents to 69 cents on 1.62 million shares after reporting its third quarter results. Because Auxly is focused on the newly legalized (but not yet available) edibles, topical products and vapes, the company had just $1.6 in revenue in Q3. Edibles, beverages and vapes were technically legalized on Oct. 17, 2019, but will not show up in Canadian stores until the middle of December. The company says it will be ready to sell these products as soon as Health Canada gives it the OK (which it expects on Dec. 16). Auxly increased its selling, general and administrative expenses in the third quarter to $16.5-million, up from $11.3-million in the second quarter.

Fortunately for Auxly, it can afford to increase its spending thanks to a $123-million debenture investment from tobacco giant Imperial Brands PLC. Imperial's investment is convertible into 19.9-per-cent ownership of Auxly, valuing the company at $618-million. The investment has left Auxly with $186.5-million in cash and working capital of $119.7-million at the end of the third quarter. It used some of that cash after Q3, when Auxly paid off $79.4-million of its outstanding debentures, while $15.8-million worth were converted into Auxly shares. In all, about 97 per cent of those debentures have been repaid or converted.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS

© 2020 Canjex Publishing Ltd. All rights reserved.

Reader Comments - Comments are open to paying subscribers of Stockwatch and unmoderated, although libelous remarks, obscene language and impersonations may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
For information regarding Canadian libel law, please view the University of Ottawa's FAQ regarding Defamation and SLAPPs.