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

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

Auxly Cannabis Announces Changes to Executive Team

Auxly Cannabis Group Inc (TSXV: XLY) has made changes to its executive team regarding the...

Friday, March 20, 2020, 11:47:16 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

Auxly Cannabis To Conduct $10.0 Million Bought Deal Financing

Auxly Cannabis (TSXV: XLY) is evidently in need of funds yet again. The company this...

Tuesday, November 24, 2020, 08:29:13 AM

Auxly Cannabis Shows Gross Profit For The First Time In Q1

The last time we wrote about Auxly Cannabis (TSXV: XLY), we were critical of the...

Tuesday, June 2, 2020, 10:30:00 AM

Auxly Cannabis Sees Revenues Decline From Fourth Quarter To $22.6 Million

Growth appears to be starting to slow for Auxly Cannabis (TSX: XLY). The firm this...

Monday, May 16, 2022, 07:56:35 AM