Auxly Cannabis Group Inc (CVE:XLY) (OTCMKTS:CBWTF) shares rolled up Monday after it reported its first-quarter results, with a number of highlights, including subsidiary Dosecann Cannabis Solutions, which pushed forward product research and development, formulation and manufacturing in 1Q.
Dosecann is developing edible and concentrate products for sale in both medical and recreational markets and owns one of Canada's largest cannabis extraction and manufacturing operations, a 42,000 sq/ft facility in Charlottetown, PEI.
Shares were up 1.2% at C$0.83 on Monday afternoon in Canadian trading.
"In the first quarter of 2019, we made significant progress toward our goals for the year: We advanced product development at Dosecann, made progress toward the construction of key infrastructure, advanced licensing and sales at Robinsons, and had our first sales of dried cannabis flower to the market," said CEO and chairman Chuck Rifici in a statement.
The company, which began as a royalty streaming company and has operations in Canada and Uruguay, reported a net loss of C$13.6 million, or $0.02 per share for the quarter ended March 31, 2019. This compares to a net loss of C$10.5 million, or $0.03 per share for the quarter ended March 31, 2018.
The company said the loss was primarily driven by an increase in expenses, and was partially offset by income tax recoveries of C$1.3 million
Earlier this month, Mackie Research put out a Buy rating on Auxly Cannabis Group with a price target of C$1.75. Analyst Greg McLeish pointed to key factors being the firm investing in cultivation opportunities and developing its product line.
"We are well on track to have our initial range of derivative cannabis products completed and available for sale into the upcoming legal market later this year," said Rifici. "With the combination of our cultivation supply, R&D, product development and manufacturing capabilities, and our relentless focus on science and innovation, we look forward to bringing the best cannabis products, brands and experiences to the medical, wellness and adult-use markets."
Contact Katie Lewis at [email protected]