In 2018, Auxly Cannabis (CBWTF) received licensing for its Kolab and CannTx projects. The Kolab project received a license for Health Canada by Canada’s Access to Cannabis for Medical Purposes Regulations. The license for the Kolab project is a significant milestone for Auxly Cannabis’ growth. Through the Kolab project, Auxly Cannabis can sell cannabis for medical purposes and adult use across Canada.
In 2018, Auxly Cannabis completed the acquisition of Inverell. The company received approval from Uruguay’s regulatory authorities. The acquisition of Inverell will help Auxly Cannabis by providing a low-cost source of cannabinoids to address the global demand.
Auxly Cannabis entered into a long-term supply agreement with Delta 9 Cannabis. Auxly Cannabis made a strategic investment in the company. According to the agreement with Delta 9 Cannabis, Auxly Cannabis holds the rights to purchase 1,000 kilograms of dried cannabis starting in January 2019. The amount can be expanded to 5,000 kilograms per annum starting in July 2020. According to the agreement, Auxly Cannabis can purchase 100 kilograms of trim per annum starting in January 2019 and 500 kilograms per annum starting in July 2020.
Auxly Cannabis’ net cash and cash equivalents grew from 33,454,000 Canadian dollars on December 31, 2017, to 236,920,000 Canadian dollars at the end of the third quarter on September 30, 2018.
Auxly Cannabis’ total assets grew from 92,579,000 Canadian dollars on December 31, 2017, to 501,040,000 Canadian dollars on September 30, 2018.
In the first nine months of 2018, Auxly Cannabis used around 75,307,000 Canadian dollars of cash for investing activities, which included investments in subsidiaries and its partners.