Today, Auxly Cannabis Group (CBWTF) announced that it entered an agreement with Curative Cannabis for the acquisition of 46% of Curative’s common shares in exchange for the issuance of 5,056,026 common shares of Auxly as consideration shares. Auxly will enter a long-term agreement with Curative for the purchase and sale of cannabis products. As per the agreement, Auxly will also fund Curative’s construction and development expenses for a cannabis cultivation facility in Chatham-Kent, Ontario.
The cannabis cultivation facility has been proposed to have a capacity of 30,000 square feet and is expected to harvest around 2,900 kilograms of cannabis per year. Curative Cannabis has plans to develop ultra-premium cannabis for recreational consumers. For more details on the transaction, please read the press release.
Today, Auxly Cannabis stock was trading at $0.66, ~1.03% below its closing price yesterday at $0.67, which is a ~0.46% decline compared to its prior closing price of $0.67 on January 22, 2019. Yesterday, the stock closed at $0.66, ~52% higher than its 52-week low of $0.44 on December 24, 2018, and ~65% below its 52-week high of $1.92 on January 29, 2018.
Today, Auxly Cannabis and its peers Tilray (TLRY) and Aurora Cannabis (ACB) are trading at $73.23 and $6.35, respectively, which is a ~2.27% and ~2.58% rise over yesterday’s closing price.
Today, the ETFMG Alternative Harvest ETF (MJ), which tracks global cannabis companies, is up 0.91% over yesterday’s close of $30.65. Auxly Cannabis Group, Aurora Cannabis (ACB), and Tilray (TLRY) make up about ~3.60%, ~7.28%, and ~8.55% of MJ’s total portfolio holding.
In January 2019, of the two analysts tracking Auxly Cannabis, one of them recommended a “strong buy,” while another analyst recommended a “buy” rating.