Auxly Draws on Further Cash From Standby Financing

Auxly Cannabis (TSXV: XLY) this morning announced that it has closed on a further $3 million of unsecured convertible debentures from its previously announced $25 million standby financing. The drawdown marks the third tranche of the financing, with the company have drawn a total of $6.25 million from the facility since its announcement on April 29.

The further drawdown from the facility brings into question the cash position, and thereby the cash burn, of Auxly. As of March 31, the company reported having total cash and cash equivalents of $21.4 million, a large decrease from the prior quarters $44.1 million position. The previous drawdown of $2 million occurred roughly two weeks ago on May 21.

Debentures issued under the third tranche are convertible to common shares at a price of $0.38, with an additional 4,342,105 common share purchase warrants being issued with a conversion price of $0.46 per share until June 8, 2022. Furthermore, while the debentures are labeled as being “unsecured” by the company, certain directors and officers of the firm have agreed to indemnify any losses not recoverable from the collateral of the company.

Auxly Cannabis last traded at $0.36 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.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Auxly Sees Sunens Farms Joint Venture Receive Cultivation License

Auxly Cannabis (TSXV: XLY) announced this morning that its joint venture partner Sunens Farms has...

Monday, June 15, 2020, 08:48:21 AM

Auxly Cannabis Sees Q2 Revenues Fall to $8.6 Million, Net Loss Hits $29.2 Million

Auxly Cannabis (TSXV: XLY) announced its second quarter financial results this morning, reporting declining net...

Friday, August 28, 2020, 08:57:28 AM

Auxly Cannabis Shutters Robinsons Facilities In Nova Scotia

Despite moving into the number two spot for Canadian cannabis market share, it appears Auxly...

Tuesday, February 8, 2022, 10:08:00 AM

Auxly Announces $25 Million Standby Convertible Debenture Facility

Auxly Cannabis (TSXV: XLY) this morning announced that it has secured up to $25.0 million...

Wednesday, April 29, 2020, 08:34:32 AM

Are Big Liquor And Tobacco Bankrolling Cannabis, Or Killing It?

Markets have been unkind to cannabis investors, and made certain fundamentals-based business bloggers, who were...

Saturday, June 6, 2020, 12:13:26 PM