Auxly Cannabis Group Inc (OTCMKTS: CBWTF) is making a highly explosive move up the charts in recent days off its $0.56 lows. The stock is a volume leader and is currently among the most popular and top traded stocks on the entire otc exchange.
CBWTF is XLY on the TSX.V. The Company operates in the red hot cannabis market responsible for many of the hottest stocks on the OTCBB. The sector continues to be red hot as legal marijuana sales are expected to grow to more than $20 billion by 2022, from approximately $10 billion in 2018, according to Marijuana Business Daily.
Auxly Cannabis Group Inc (OTCMKTS: CBWTF) is 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.
Auxly Cannabis Group which changed its name from Cannabis Wheaton Income Corp in June of this year is sitting on a war chest of $206 million Canadian dollars. Currently it is busy positioning itself as a leader in the Canadian cannabis sector which is heating up fast as the recreational marijuana market opens in Canada this October. Demand is widely expected to outpace supply.
CBWTF has a streaming model where the company provides financing to other businesses in exchange for a portion of their crop yield. This could prove a highly successful strategy for the Company which has been busy making some large acquisitions in recent weeks.
Earlier this year CBWTF closed its previously announced acquisition of all of the outstanding securities of Dosecann Inc. a late-stage “Licensed Dealer” applicant pursuant to the Narcotic Control Regulations.
Located in the biotech hub of Charlottetown, Prince Edward Island, Dosecann is currently completing the buildout of a 42,000 square foot facility, purpose-built for the research, development, extraction, formulation, filling and packaging of cannabis-based products. Upon receipt of regulatory approval, Dosecann will leverage its state-of-the-art facility to begin developing a range of value added cannabis-based products for the Company and its streaming partners to ultimately be sold to medical cannabis patients and, upon approval, into the natural health product and adult-use cannabis markets.
Also this year the Company launched KoLab Project Inc. Upon receiving the necessary regulatory approvals, Kolab Project will offer an exclusive monthly subscription platform to authorized medical cannabis patients. The objective of KoLab Project is to rethink the patient experience for Canadians registered under the Access to Cannabis for Medical Purposes Regulations.
Earlier this month CBWTF announced it has entered into a strategic partnership with Cannabis OneFive, Inc., a provider of quality management and document control software systems for the cannabis industry. Auxly’s wholly-owned subsidiary, Dosecann Inc. will become a lead subscriber of C15’s software, and the Company expects the C15 software to be deployed at other Auxly facilities.
Also several days ago CBTWF said it has entered into a share purchase agreement with KGK Science Inc. to acquire all of the issued and outstanding shares of KGK for total consideration of $12,300,000 payable in cash and common shares of the Company. KGK is a leading health and wellness focused private contract research organization based in London, Ontario, and the Company expects to leverage KGK’s expertise and research abilities to further the Company’s product development efforts through collaboration with the Company’s wholly owned subsidiary, Dosecann Inc.
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Currently trading at a $464 million market valuation CBWTF is sitting on a $206 million war chest, has manageable debt and small but growing revenues reporting $618,361 in sales for the 3 months ended March 31, 2018 up from $0 for the same period last year. There is little wonder CBWTF is currently tearing up the charts; with recreational marijuana set to start in October in Canada CBWTF is very well positioned to become a leader in this coming booming market. We will be updating on CBWTF when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with CBWTF.
Disclosure: we hold no position in CBWTF either long or short and we have not been compensated for this article.