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.
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.