Auxly Cannabis (TSXV: XLY) by all accounts is continuing to burn through cash. The company drew down its fourth tranche of financing under its $25 million standby convertible debenture facility today, bringing the total funds pulled to $9.25 million.
Originally announced on April 28, the latest tranche comes a little over two weeks from the previous drawdown which occurred on June 9. That drawdown was also for a figure of $3 million, suggesting the company is steadily burning through capital as it looks to operationalize its Sunens Farms joint venture which recently acquired a Health Canada cultivation license.
The latest round of financing will see the debt have a conversion price of $0.305 per common share, while Auxly also issued a total of 5,409,836 common share purchase warrants. Each warrant has an expiry of two years, and an exercise price of $0.366. The convertible debentures also have a maturity of two years, and bear interest at a rate of 7.5% per annum.
Auxly Cannabis last traded at $0.30 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.
