Auxly Revenue Keeps Rising, But Losses Remain - Grow Life 420

Auxly Revenue Keeps Rising, But Losses Remain

April 26, 2021

#KahliBuds #MMJ #CBD #THC

Auxly Cannabis Group Inc. (OTCQX: CBWTF) released its fourth-quarter and full-year 2020 financial results. Auxly reported total revenues for the fourth quarter were $18.8 million versus $3.1 million for the same time period in 2019. Earnings per share were ($0.04) for the quarter versus last year’s ($0.02) for the same time period. All amounts are Canadian dollars.

For the full year of 2020, revenue jumped 508% to $50.7 million versus 2019’s $8.3 million. For the year revenues were $57.2 million as compared to $2.3 million in the same period in 2019, but excise taxes cut that figure by $10 million.

The net losses for the year improved by 17% coming in at $85.4 million versus 2019’s net loss of $102 million. The company said that the improvement of $21.2 million in 2020 was primarily the result of a gross profit increase of $14.8 million, total expenses consistent with the prior year amounts, lower impairment losses and total other losses of $16.9 million, partially offset by lower income tax recoveries of $10.3 million. Net losses of $108.6 million in 2019 were primarily driven by an increase in total other losses and depreciation and amortization expenses, partially offset by income tax recoveries. For 2020, SG&A expenses were $48.9 million, a decrease of $1.4 million from 2019.

Net cannabis revenues of $46.6 million during the period were approximately 80% Cannabis 2.0 Products, with the remainder from Cannabis 1.0 Products, and represented a significant increase over 2019 where Cannabis 2.0 sales began in December. the company said that during the year approximately 75% of cannabis net revenues originated from sales to British Columbia, Alberta, and Ontario led by strong market shares in vapes and edibles, resulting in Auxly being the top LP for Cannabis 2.0 sales nationally. The sale of Cannabis 1.0 Products was led by the launch of Kolab Project flower and pre-rolls and Robinsons dried flower in the summer of 2020.

“Auxly saw tremendous growth in its first full year of commercial operations, with 508% growth in our net revenue year over year,” said Hugo Alves, CEO of Auxly. “As one of the first LPs to offer Cannabis 2.0 products upon legalization and one of the largest, most widely distributed 2.0 product portfolios on the market, we have successfully secured our position as one of the top cannabis companies in Canada.”

Sunens Update

Auxly gave an update on its organic joint venture with Sunen Farms Inc. On April 16, 2021, the company said that Sunens received a notice of default from the Bank of Montreal in its capacity as a lender, administrative agent, and syndication agent under the Sunens’ credit agreement with respect to, among other things, Sunens’ failure to satisfy recently established revenue milestones for the first quarter of 2021. As part of such financing provided by the syndicate, Auxly has guaranteed payments up to $33 million in the event of default.

Although the lenders have reserved their rights under the credit agreement, they are continuing to advance funding which Sunens will use to fund its day‐to‐day operations. Sunens commenced cultivation within the licensed area upon receiving its license in June 2020, and during the first quarter of 2021 has sold products to Auxly and other licensed producers. Sunens may require additional funding for working capital until production and revenue from sales reach expected levels.

Auxly shares have traded within a range of $0.28 and $0.30 over he past 30 days.

The post Auxly Revenue Keeps Rising, But Losses Remain appeared first on Green Market Report.



Debra Borchardt, KahliBuds, 420GrowLife

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