Auxly

Auxly Cannabis Group Inc. is a leading Canadian consumer packaged goods company operating in the cannabis products market. Based in Toronto, the company focuses on developing, manufacturing, and distributing a diverse range of branded cannabis products, including dried flower, pre-rolls, vapes, oils, and other Cannabis 2.0 offerings.

Auxly's core product lines encompass the Back Forty and Parcel brands, which have gained significant traction in the pre-roll, dried flower, and vape categories. The company leverages its state-of-the-art Auxly Leamington facility, a 1.1 million square-foot greenhouse and processing center, to cultivate its award-winning cannabis strains cost-effectively. Auxly has implemented manufacturing automation and invested in enhancing its pre-roll capabilities to streamline operations and improve product quality.

In 2023, Auxly achieved positive adjusted EBITDA for the full year, generated over USD 100 million in net revenues, and reported industry-leading margins among peers in the adult-use recreational market, with a Gross Margin on Finished Cannabis Inventory Sold of 34%. The company has focused on optimizing its product portfolio, reducing overhead costs, and consolidating operations to drive profitability and sustainable growth.

Key customers and partnerships

Auxly maintains strong retail distribution across key Canadian provinces, including British Columbia, Alberta, and Ontario, which account for a significant portion of its cannabis sales. The company has secured notable partnerships, such as a strategic relationship with Imperial Brands plc, a leading tobacco company that has converted a substantial portion of Auxly's debt into equity, increasing its ownership stake to 19.8%.