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Auxly Cannabis Group Inc (OTCMKTS:CBWTF)

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Auxly Cannabis Group Inc (OTCMKTS:CBWTF) shares are battling for key support. The story here is really going to be about growth potential. As such, we wanted to circle back around the company’s recent financial data and the way that data was delivered to the marketplace.

Communications and messaging may not seem like a big deal. But in a high-growth and highly speculative market space such as cannabis, how that messaging is handled is probably far more important than it may be in large-cap stocks or more established market segments where there is more meat on the bone in terms of the focus of analysis. For pot stocks, much of the game of gaining a premium valuation – the benefit of the doubt – is going to be about how things are presented just as much as it will be about what is presented. In this vein, Auxly actually impressed us in their latest market communications materials surrounding earnings for the company’s financial and operational results for the three and nine months ended September 30th, 2018.

Auxly Cannabis Group Inc (OTCMKTS:CBWTF) operates as a cannabis streaming company.

It provides funding for cannabis production; and holds contractual rights and minority equity interest relating to the operation of cannabis facilities. The company was formerly known as Cannabis Wheaton Income Corp. and changed its name to Auxly Cannabis Group Inc. in June 2018. Auxly Cannabis Group Inc. was incorporated in 1987 and is headquartered in Vancouver, Canada.

It provides funding for cannabis facility expansions, operations, and initial construction in exchange for minority equity interests and a portion of the cultivation production.

The company was formerly known as Knightswood Financial Corp. and changed its name to Cannabis Wheaton Income Corp. in May 2017. Cannabis Wheaton Income Corp. was incorporated in 1987 and is based in Vancouver, Canada, and became known as Auxly Cannabis Group Inc over recent months.

The company frames itself as a collective of entrepreneurs with a passion for the cannabis industry past, present and future. “Our mandate is to facilitate growth for our partners by providing them with financial support and sharing our collective industry experience. Our partners all have different visions, voices and brand values, and all share a common goal—to build a world-class industry based on ethics, diversity, quality and innovation.”

 

It’s How You Say It

According to the release, Auxly is a global cannabis company with assets in every segment of the cannabis value chain. Through three distinct verticals: Upstream, Midstream and Downstream, Auxly’s platform provides for a significant amount of operational flexibility and control resulting in improved margin dynamics. Auxly’s management team has prioritized the following objectives for each of the Company’s business segments.

While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action CBWTF shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -4% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities.

A good example of the strength of communications here is given by the company’s messaging around its international growth potential: “International: In order to best address expanding global demand for cannabinoid-based products, the Company has acquired an 80% ownership in Inverell S.A. providing the Company with a long term, stable supply of CBD molecules to sell into the Company’s international distribution channels. In addition, to meet near term demand generated by the Company’s international channels, the Company signed an international supply agreement with Aphria Inc. to purchase up to 20,000 kilograms of cannabis products on an annual basis, during the term of the agreement. The Company is increasingly evaluating new opportunities across the cannabis value chain in North America and Internationally as several jurisdictions look to legalize cannabis use for medicinal and/or recreational use. The Company anticipates that the International segment of the business will become progressively more important to the overall strategy in the long term.”

Auxly Cannabis Group Inc (OTCMKTS:CBWTF) had no reported sales in its last quarterly financial data. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($295.8M against $0).

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Green Organic Dutchman Holdings (OTCMKTS:TGODF) To Review Financing Alternatives For Construction Purposes

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Green Organic Dutchman Holdings (OTCMKTS:TGODF) has, over the years, been focusing on the production of premium organic cannabis products. The business guru has today disclosed details about its credit financing. According to its spokesperson, the company needs to complete the construction of a number of its business facilities. The facilities are in Ontario, Ancaster, and Phase 1a at Valleyfield, Quebec. Lately, the business has been reviewing some financial alternatives to see the ones to settle for.

The turn of events

In a statement, the company has revealed that the market conditions have been very dynamic and thus need from proper planning. It has, in the past, held discussions regarding some commercial bank facilities and equipment leasing in a bid to identify what would work. The company admits that the discussions were fruitful since it was able to chart the way forward. However, the main point of the discussion wasn’t arrived at. That was because most of the financing sources turned out to be inappropriate. The company says that most of them did not match the required timeframes. It says it had no otherwise but to start reviewing other alternatives.

Plans moving forward

The completion of these facilities is a costly undertaking, but the company seems quite determined.

An official working with The Green Organic Dutchman Holdings but who wanted his identity kept anonymous has made a point. He says that the company, at the moment, has no debt. However, it has about $56.7 million available in cash in Canada. It also has some $40.2 million that will take care of the company’s capital expenditures. The construction activities at the Ancaster are almost reaching completion according to sources. The business giant says that in a matter of about 6-weeks, it will have completed the construction activities here.

Green Organic Dutchman Holdings is optimistic it will get the financing that it requires. In that particular regard, it will channel the funds towards accelerating its commercial production. The goal is to increase its revenues by a significant margin.

So far, the company has gotten into several supply agreements. Some of them are with Alberta, British Columbia, and Ontario. The deal is to engage in the distribution of products on a nationwide scale.

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HEXO (OTCMKTS:HYYWF) Expects To Post Net Revenues Of $16.5 Million in Q4 2019 And $48.5 Million For FY 2019

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HEXO (OTCMKTS:HYYWF) expects to post net revenues of up to $16.5 million in Q4 2019. The company is hoping to post revenues of up to $48.5 million for FY 2019. It has withdrawn the previously announced outlook for FY 2020.

Q4 results below the estimates

Co-founder and Chief Executive Officer of Hexo, Sebastien St-Louis, said the net revenues of Q4 missed the forecast mainly because of reduced sales. He said the company is not happy with the results and will change operational and sales strategies to boost sales in the future.

The company is engaged in re-configuring the operations in the last quarter and would focus on high selling strains. Hexo began a new sales strategy to improve performance in the coming quarters.

Withdraws outlook for FY2020

A delay in getting the nod from government departments for the products extracted from cannabis together with store rollouts at a slower pace and pricing pressures are felt nationwide. A sluggish opening of retail stores has limited the reach of Hexo to significant customers in the market. It also sees an unpredictability to ensure the availability of cannabis-derived products because of delays in jurisdictional decisions and uncertainty in regulatory approvals in Canada. Therefore, Hexo decided to remove the previously announced forecast for FY 2020.

CEO said it is painful to withdraw the outlook for FY 2020. The company decided to withdraw the outlook because of the prevailing uncertainties in the market. Hexo is evaluating its operations and plans to improve efficiencies and achieve profitability. The company is focusing on strategic priorities to offer rich dividends to the shareholders in the long-term.

Hagens Berman alerts investors

Hagens Berman warned investors of an investigation into Hexo on violation of security laws. The firm informed investors to file a loss-form to find out if they qualify to recoup investment losses they have suffered in Hexo. The investigation team will check whether Hexo has misled the investors by exaggerating about its business model and the sales of cannabis products through the retailers.

Chief Finance Officer of Hexo, who joined the company a few months back, resigned abruptly. Following the exit of CFO, Christopher Carey, an analyst at Bank of America, has downgraded the stock to underperform.

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LeafBuyer Technologies Inc. (OTCMKT:LBUY) Reports 59% YoY Growth In Revenue Following Optimization Of Its Platforms

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LeafBuyer Technologies Inc. (OTCMKT:LBUY) has announced that its annual revenue for FY 2019 grew by 59%, reflecting the revenue booked this year against last year. This growth is above the industry average that currently stands at 24%.

Leafbuyer optimized platforms to be competitive

Kurt Rosner, the CEO of Leafbuyer, stated that they had spent the year optimizing their platforms to have the edge over competitors. He added that they were determined to provide unrivaled tech solutions for the fast-growing cannabis industry. Rossner said that the sales team has continued to execute the company’s strategy, and it is maintaining the momentum as fall approaches.

Over the past year, the company greatly expanded its reach to several states, including Oklahoma and California, among others. Thus has allowed the Leafbuyer to reach a wider audience and enabled targeted sales initiatives. In June this year, the company opened a satellite office in Los Angeles, which provided a centralized and reachable hub for the company’s West Coast customers. The Los Angeles office has sufficient staff to allow the Denver based sales representatives to focus on selling in the East Coast and Midwest regions.

Leafbuyer has expanded its marketing platform

Besides conventional online listing, the company has also enhanced its marketing platform, and now it includes texting as well as loyalty products. The CEO said loyalty had been the company’s fastest-growing segment, and they are optimistic that it will maintain that growth momentum going to 2020.

In August, the company stated that it is in a path to profitability, and that will achieve its goal in the first half of next year. The company’s aggressive growth strategy focuses on user acquisition, and they hope to double its organic growth by the end of this year. The company’s management team is expecting some acquisitions with robust synergies going forward. The company recently acquired Greenlight Technologies, which is an application development company based in California. Currents the management is in negotiations for the acquisition of CBD.io, a Las Vegas-based trade show.

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