Cannabis Co. Auxly Raises $8M By Selling Units With ATB Capital Markets Inc. As The Only Agent

Auxly Cannabis Group Inc. XLY CBWTF completed an $8 million private placement offering of units, with ATB Capital Markets Inc. acting as the only agent.

Under the offering, the vertically-integrated cannabis company issued 23.88 million units of the company with a price of $0.335 per unit.

Each unit consisted of one share of the company and one-half of one share purchase warrant. Each warrant enables the holder thereof to buy one share at a price of $0.42 per share in the following 36 months upon the closing of the offering.

The Toronto-headquartered company said it plans to use the collected net proceeds to support its standard corporate activities.

Recent Activities

Earlier this month, Auxly appointed ex Tilray Inc. TLRY director of global human resources, Andrea Fraser, as chief people officer.

 “We believe she is the right leader in helping us continue to build an engaged, inclusive, and high-performing culture at Auxly, which will be vital for us as we move forward in executing on our corporate growth strategy in 2021 and beyond,” Auxly CEO Hugo Alves said at the time.

In March, the cannabis company announced it will graduate to the Toronto Stock Exchange, calling the move “a significant milestone," and the "next logical step."

In February, the company completed a $20 million bought deal short form prospectus offering, under which it has issued 54.4 million units, with a price of 37 cents per unit.

Price Action

Auxly’s shares were trading 1.11% lower at 29 cents per share at the time of writing.

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Photo by Jeff W on Unsplash