Auxly Cannabis (TSXV: XLY) is the latest firm to announce an at-the-market financing. The company this morning revealed that it will be conducting an ATM financing to the tune of $30.0 million.
The program will be conducted by ATB Capital Markets, whom is becoming a go-to source of such financings within the cannabis space. The program has been described by Auxly as “providing expanded flexibility to the company should future additional financing be needed.” The sale of the shares will be conducted as per a distribution agreement dated March 23, 2021.
Net proceeds from the financing are to be used for furthering business objectives. Such activities include expanding cannabis 1.0 product offerings, as well as maintaining its cannabis 2.0 offerings. Funds will also be used for corporate purposes and working capital, which includes debt repayments, capital expenditures, and potential future acquisitions.
The ATM financing is set to run until the earlier of the financing being completely fulfilled, and “the date on which the receipt issued for the Company’s base shelf prospectus dated March 18, 2021 ceases to be effective.” At current market prices it is expected to dilute the equity by roughly 80 million new shares.
Auxly Cannabis last traded at $0.375 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.