Buzzworthy news that can lead to more investing exposure is exciting for under-the-radar companies. On April 20 — which just happens to be known as an unofficial marijuana holiday — Auxly Cannabis Group (OTC:CBWTF) began trading on the Toronto Stock Exchange (TSX). But make no mistake, this is not a new company, and not a first listing.
Auxly has been around since 1987, and has traded on the TSX Venture Exchange (TSXV) since 2017 as Cannabis Wheaton Income Corp. It changed its name to Auxly in 2018, and has traded on the U.S. over-the-counter (OTC) market. Will its new listing on the TSX be the launch pad that propels an investment rocket?
Image Source: Getty Images
On the backend
As a consumer packaged goods company, Auxly shells out millions of dollars in exchange for a decent sized piece of the crop, along with minority equity interest in its partner companies. When marijuana was still illegal in Canada and financing was difficult to come by, Auxly was there to help producers create facilities and begin production. Auxly ends up with part of the crop production as well as part of the sales. In a booming market, that sure seems like a great business situation. What’s been keeping the average investor at bay, however, is Auxly’s dilution of its own shares.
After providing financing to its production partners, Auxly has sometimes turned to underwriters to obtain additional financing by selling off shares, further diluting the…
Original Author Link click here to read complete story..
Buzzworthy news that can lead to more investing exposure is exciting for under-the-radar companies. On April 20 — which just happens to be known as an unofficial marijuana holiday — Auxly Cannabis Group (OTC:CBWTF) began trading on the Toronto Stock Exchange (TSX). But make no mistake, this is not a new company, and not a first listing.
Auxly has been around since 1987, and has traded on the TSX Venture Exchange (TSXV) since 2017 as Cannabis Wheaton Income Corp. It changed its name to Auxly in 2018, and has traded on the U.S. over-the-counter (OTC) market. Will its new listing on the TSX be the launch pad that propels an investment rocket?
Image Source: Getty Images
On the backend
As a consumer packaged goods company, Auxly shells out millions of dollars in exchange for a decent sized piece of the crop, along with minority equity interest in its partner companies. When marijuana was still illegal in Canada and financing was difficult to come by, Auxly was there to help producers create facilities and begin production. Auxly ends up with part of the crop production as well as part of the sales. In a booming market, that sure seems like a great business situation. What’s been keeping the average investor at bay, however, is Auxly’s dilution of its own shares.
After providing financing to its production partners, Auxly has sometimes turned to underwriters to obtain additional financing by selling off shares, further diluting the…
