On April 20 — which just happens to be known as an unofficial marijuana holiday — Auxly Cannabis Group .
As a consumer packaged goods company, Auxly shells out millions of dollars in exchange for a decent sized piece of the crop, along with minority equity interest in its partner companies.
After providing financing to its production partners, Auxly has sometimes turned to underwriters to obtain additional financing by selling off shares, further diluting the shares that its investors were counting on to grow.
After being practically flat for the previous two years, the company just reported tremendous annual revenue growth of 508% on a year over year comparison, to $50.8 million for 2020.
Along with that explosion in annual revenue, the company can now make claim to the number one ranking for licensed producers in Cannabis 2.0 — cannabis derivatives such as vapes and edibles — product sales for the year, and a 14% market share in that category, including 19% of the vape market and 12% in edibles.
2020 results showed that the company is capable of doing so, by keeping fourth quarter SG&A expenses below $10 million, and a sequential decline for those expenses for all four quarters of 2020, resulting in a 3% annual decline when compared to 2019.
I, for one, will keep my eyes toward the sky for Auxly, while my attention will be focused squarely on revenue and earnings, with the hope for a bit of a profit.