Auxly Cannabis (TSXV: XLY) appears to be working backwards when it comes to product offerings. The company this morning announced a “strategic expansion” into the dried flower segment of the Canadian recreational cannabis landscape, also referred to as Cannabis 1.0.
The company this morning released its “three pronged strategy” for entering the market, despite already having somewhat of a presence in the space. Auxly intends to expand its flower offerings under its Kolab Project Growers Series label, with the launch of new cultivars with its current partners while also “securing new partnerships with top-tier cultivators.” This appears to be code for white-labeling new product.
Also released by the company is that it will be offering new products under its Back Forty brand at what it refers to as “compelling price points,” likely insinuating it is going after the value segment of the market. Finally, the company will be boosting pre-roll production to launch “disruptive” products under both of the aforementioned brands.
The company also indicated this morning that its 2.0 products will remain “key to the business strategy.”
Auxly Cannabis last traded at $0.38 on the TSX Venture.
Information for this briefing was found via Sedar and Auxly Cannabis Group Inc. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
