The past weeks may have been particularly tough for many companies in the cannabis sector, but Auxly Cannabis Group (TSXV:XLY) (OTCQX:CBWTF) has emerged as one of the notable exceptions. The Auxly stock has rallied by as much as 100% over the course of the past month, and it is likely going to be in the radars of investors in the coming days.
Key Drivers
The reasons for the surge in Auxly stock are manifold. Earlier on in April, the company announced a significant deal. The company announced that its fully owned subsidiary Dosecann LD Inc had reached an agreement with Natures Crops International for exclusive global rights of Omega Rich Ahiflower Seed Oil.
It is a significant deal for Auxly Cannabis since its subsidiary will then use the oil in many of its products. The move allows the company to further diversifying its product portfolio and continuing to offer customers new products. However, that is not all. This past week, Auxly Cannabis also announced that it has entered into a partnership with COAD University. The company’s Kolab Project, which is focussed on design and culture, is going to collaborate with the university. It is an interesting development for Auxly and one that is going to be watched closely by investors.
COAD is one of the best-known arts and media universities in Canada. Auxly is also going to support art exhibitions at the university by way of this partnership. In mid-April, the Auxly subsidiary Desecann had announced that it had inked a supply agreement with Medical Cannabis. The company in question is the online medical cannabis shopping platform operated by Shoppers Drug Mart, and it goes without saying that it represents a significant development for Auxly.
Due to this deal, a large number of Dosecann products are going to be made available to consumers in Canada. A whole range of products starting from chews, vapes, oils, and edibles are going to be available. The deal is for three years, but there is an option to extend it by two more years.
