Auxly Closes the Acquisition of Robinsons Cultivation Facilities in Nova Scotia, Hopes to Streamline and Reduce Cultivation Costs
Auxly Cannabis Group (TSX.V – XLY) (OTCQX: CBWTF) Incorporated, a company producing industry-leading cannabis products, announced the closure of its two cultivation facilities in Nova Scotia, in the Annapolis Valley, located in the town of Kentville and the nearby township of Hortonville respectively.
The company is currently carrying on its efforts to simplify and streamline its methods of cultivation, thereby cutting costs and increasing its operational efficiency to ensure that it is profitable at the operational level within the first six months of the current year.
About Auxly Cannabis Group Inc.
Auxly, a top-selling licensed producer of cannabis 2.0 products, is headquartered in Toronto in Canada. The company’s product range includes premium chocolates, flavor-forward soft chews, vape products, cannabis flowers and others. Its four proprietary brands are Kolab Project, Foray, Dosecann, and Robinsons.
Auxly focuses on innovation and production of superior quality cannabis for both medicinal and recreational markets. The company has a highly experienced team of talented workers and visionaries committed to widening the market for its products.
It is listed on the Toronto Stock Exchange where it trades under the symbol XLY and on the OTC markets of the U.S. where it trades under the symbol CBWTF.
About the Cultivation Facilities
The company has taken the decision after carefully considering its choices for reducing operating expenses, and streamlining its vertically-integrated structure, while at the same time ensuring that there would be no negative bearing on its production capabilities and projected sales.
By introducing changes in its cultivation methods, Auxly can focus better on increasing the production of high-grade cannabis in its freshly-acquired facility in Leamington in Essex County of Canada’s Ontario province.
This facility, currently known as Auxly Leamington, and had earlier belonged to Sunens, is a high-tech greenhouse facility of 1.1 million square feet, that produces special cannabis strains used in the production of Auxly’s industry-leading cannabis brands.
The facility gives Auxly significant additional resources for cultivating, processing, manufacturing, and storing cannabis. As the demand for Auxly’s branded products increase, the new facility will help the company to raise the scale of its production, and thereby increase the margin of profit as well.
The cultivation facility that Auxly owned in Kentville in Nova Scotia is an indoor facility of 27,700 square feet, known as Robinson Cannabis Inc. It was used for manufacturing craft cannabis of superior quality. The other one, in Hortonville, known as Robinsons Outdoor Grow, is an outdoor cultivation facility spread out across more than 158 acres.
However, Auxly did not use this facility for cultivating cannabis and instead used the area for processing and as storage space. It is keen on divesting itself of these two assets and wants to invest the proceeds from the sale in improving its other operations.
CEO of the company, Hugo Alves, said that closing down the Nova Scotia facilities entailed a very difficult decision, despite the company’s conviction that the new steps would eventually make it more fortified for moving towards its long-term goals.
Since the company had a very hardworking and talented team of employees at those facilities, the impact the change would have on them was to be taken into consideration. He thanked the employees for their help and vouched that the company would provide maximum possible help to them during the current transitional phase.
Alves added that Auxly was working hard for achieving its goal of managing a positive EBITDA within the first two quarters of 2022, thereby delivering successful financial results for the company’s stakeholders.
According to him, the change that would allow the company to optimize its vertically-integrated setup would strengthen its finances, increase its operational efficiency, and enhance its capability to satisfy the increasing requirement for the branded products of Auxly.