Auxly To Graduate To The Toronto Stock Exchange (TSX)

Auxly Cannabis Group Inc. XLY CBWTF, a cannabis-focused consumer packaged goods company, is listing its common shares on the Toronto Stock Exchange (TSX).

The Toronto-based company announced Monday it has obtained conditional approval to graduate from the TSX Venture Exchange.

Hugo Alves, the company's CEO called the move "a significant milestone," defining it as the "next logical step."

Auxly expects to receive the final approval of the listing once it fulfills all conditions required by the TSX.

"By raising our profile in the investment community and enhancing the liquidity of our stock, we will be able to broaden our shareholder base and continue to build long-term shareholder value for our investors," Alves stated.

Recent Moves

Over the past couple of months, Auxly has been raising funds to support its business growth.

In January, a bought-deal offering of some 40.55 million of its units, at 37 cents per unit, brought in $15 million.

Shortly after, the company raised an additional $20 million in financing through a bought deal short form prospectus offering of 54.4 million units at 37 cents per unit, including the full exercise of the over-allotment option.

According to its latest earnings report, Auxly hit $13.4 million in revenue in the third quarter, representing an 85% increase from the prior period.

Under The Radar

For Cantor Fitzgerald analyst Pablo Zuanic, Auxly has been "flying under the radar."

He thinks that the company's stock is mispriced due to "its smaller scale (a valid point in 2019), lack of liquidity, absence of earnings conference calls, and, on the surface, its complex stock derivative structure."

Therefore, Cantor maintains an Overweight rating for Auxly, touting its "2.0 franchise" as valuable to those shopping for scale and specific segment strength (i.e. the company's pre-roll aspirations).