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Auxly Cannabis: Business Strategies and Financial Projections


Jan. 8 2019, Updated 3:00 p.m. ET

Business strategy

Auxly Cannabis (CBWTF) holds assets in all of the segments in the cannabis industry’s value chain. The company has three important divisions—upstream, midstream, and downstream.

In the upstream business, Auxly Cannabis is acquiring cultivation capacity and developing facilities in Canada and Uruguay. A strong supply pipeline will help Auxly Cannabis develop a platform for a diverse and constant source of cannabis. The platform will likely help the company contribute to the overall cannabis value chain.

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In the midstream business, Auxly Cannabis aims to add value to the cannabis produced in the upstream business through intellectual property applications. The company is working towards developing a strong intellectual property that includes unique extraction and purification methodologies, patent acquisitions, product licensing, and trademark. Through Auxly Cannabis’ wholly-owned subsidiaries, the company plans to develop proprietary cannabis-derived products and secure it with intellectual property provisions.

Auxly’s Cannabis’ downstream business focuses on the distribution channel. The company is focused on developing cannabis products for medical and non-medical markets.

Financial projections

Analysts expect Auxly Cannabis to generate net revenues of 3.34 million Canadian dollars in fiscal 2018. Analysts expect that Auxly Cannabis’ revenues could grow to 122.38 million Canadian dollars and 370.02 million Canadian dollars, respectively, in fiscal 2019 and 2020.

Analysts expect Auxly Cannabis to report a net income of -40.08 million Canadian dollars in fiscal 2018.

Analysts estimate that Auxly Cannabis will report a gross income and gross profit margin of 2.0 million Canadian dollars and 66.00%, respectively, in fiscal 2018.

Analysts estimate that Vivo Cannabis (VVCIF) will report revenues of 12.7 million Canadian dollars in fiscal 2018. HEXO (HYYDF) is expected to generate revenues of 100.5 million Canadian dollars in fiscal 2019.


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