(This story has been updated with additional details about Auxly’s investment in the Kentville cultivation site.)
Canadian producer Auxly Cannabis Group sold its Auxly Annapolis indoor cultivation site in Kentville, Nova Scotia, for total proceeds of 6 million Canadian dollars ($4.6 million), or less than half what the company invested in the facility.
Auxly had invested roughly CA$12.4 million into constructing and developing the facility as of the end of 2020, according to an April 2021 regulatory filing.
At the time, Auxly anticipated further investments of CA$500,000.
Proceeds from the sale of the facility to an undisclosed “private purchaser” will be used “to support Auxly’s ongoing operations,” the company announced in a Tuesday news release.
“Being able to monetize this non-core asset to strengthen our cash position in a non-dilutive way is fantastic for the company and provides us with additional capital to support Auxly’s strategic objectives,” CEO Hugo Alves said in a statement.
Auxly shuttered the Kentville facility and another site in Hortonville, Nova Scotia, in February, cutting roughly 55 jobs.
The Hortonville facility, an outdoor cultivation site called Auxly Annapolis OG, is still up for sale, a company spokesperson told MJBizDaily.
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Toronto-based Auxly, then called Cannabis Wheaton Income Corp., acquired the Kentville facility from Robinsons Cannabis in an all-stock deal that closed in 2018.
Auxly is attempting to achieve profitability on the basis of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
The company reported an adjusted EBITDA loss of CA$5.6 million in its most recent quarter.