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Auxly Reports Q2 2020 Financial Results

Written by Customer Service on . Posted in Public Companies.

TORONTO, Aug. 28, 2020 (GLOBE NEWSWIRE) — Auxly Cannabis Group Inc. (TSX.V – XLY) (OTCQX: CBWTF) (“Auxly” or the “Company“) today released its financial results for the three and six months ended June 30, 2020. These filings and additional information regarding Auxly are available for review on SEDAR at www.sedar.com. All amounts are Canadian dollars except common shares (“Shares”) and per Share amounts.
Q2 2020 Highlights and Subsequent EventsTotal net revenues of $8.6 million for the three months ended June 30, 2020, an over 200% increase from the same period last year, comprised of $6.8 million of cannabis net revenues and research revenues from KGK of $1.8 millionLaunched Robinsons brand in Ontario and Nova Scotia, with four distinctive strains, all grown with care at the Robinsons indoor facility in Kentville, Nova ScotiaAuxly’s joint venture Partner Sunens, received its cultivation licence for the first phase of its fully automated, purpose-built, 1.1 million sq ft. greenhouse facility, which includes approximately 360,000 sq ft of cultivation, processing and storage spaceEntered into a manufacturing agreement to produce dosistTM products in CanadaDosecann received its Cannabis Research Licence from Health Canada, which permits Dosecann to administer cannabis extracts, edible cannabis and cannabis topicals to human subjects for purposes of palatability and sensory testingAuxly’s Kolab Project announced partnership with Greentec on industry-wide vape recycling program for all cannabis retailersSecured $25 million convertible debenture standby financing, of which the Company has completed four tranches totaling $9.25 millionQ2 Highlights*Attributable to shareholders of the Company
**Adjusted EBITDA is a Non-IFRS financial measure.  Refer to the Non-IFRS Financial and Performance Measures section in the MD&A for definitionsHugo Alves, CEO of Auxly, commented: “We are excited to have another successful quarter of cannabis sales behind us, with Q2 bringing in $6.8 million of cannabis net revenues, and $8.6 million in total net revenues. Despite a decline in sales as compared to Q1 2020, due in part to temporary store closures as a result of COVID-19 and new competitor value brands entering the market, we have taken immediate and deliberate steps to align our Company to reflect current consumer demands and market conditions.  We have already seen improved velocity of sales for our key brands from the pricing adjustments we made earlier this quarter, and are adding new product profiles that appeal to the fast-growing value segment, such as our Foray and Kolab Project’s 1g vape cartridge.  Additionally, we have seen a tremendous consumer response to the recent launch of our Robinsons and Kolab dried flower offerings.  As we move forward in executing our business strategy, we are committed to doing so with the highest degree of fiscal discipline.”Results of Operations

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