Auxly Cannabis Is One Of The Biggest Winners Of The Cannabis 2.0 Movement In Canada

The transformation of the Canadian cannabis market has proven to be a major catalyst for the companies that are levered to this vertical of the industry. These products are commonly referred to as cannabis 2.0 products and this is a sub-sector that we have a long-term bullish outlook on.

One of the surprises with Canada’s cannabis 2.0 is related to the types of companies that are capturing market share. Although large-scale Canadian Licensed Producers (LPs) have a significant amount of market share, there are a few mid-tier Canadian LPs that have been major beneficiaries of the cannabis 2.0 market.

The primary reason for the success for mid-tier Canadian LPs in the cannabis 2.0 market are the brands that it sells. Some of these operators have formed strategic partnerships with high-profile US cannabis brands which already had a significant amount of demand from Canadian medical patients and recreational consumers.

We would classify Auxly Cannabis Group (TSX Venture: XLY) (OTC: CBWTF) as a mid-tier Canadian LPs that has been one of the greatest beneficiaries of the cannabis 2.0 market. The company formed strategic relationships with leading US cannabis brands and we believe this has proven to be a major growth driver for the business.

Earlier this week, Auxly’s Kolab Project brand announced the launch of Canada’s first cannabis-infused live resin edible. We believe the launch of the product has further differentiated the company’s portfolio of cannabis 2.0 products from the competition and will monitor how the product gains traction with consumers.

Kolab Project’s 132 Series Live Resin Black Cherry Punch Soft Chews can be purchased in Ontario, Alberta, Saskatchewan, and Manitoba. The management team expects to sell the brand to additional provinces in coming months and we are favorable on the size of the footprint so far.

During the last month, Auxly has been trending to the downside and we will be monitoring price movements ahead of its next earnings report. We believe the company’s leverage to Canada’s cannabis 2.0 market is an attractive aspect of the story and a core growth pillar for the entire business.

If you are interested in learning more about Auxly’s leverage to Canada’s cannabis 2.0 market, please send an email to support@technical420.com with the subject “Auxly’s Cannabis 2.0 Products” to be added to our distribution list.