You might think that Imperial Brands could have chosen a company like HEXO as its cannabis partner. After all, HEXO CEO Sebastien St.-Louis has stated publicly that his company is in discussions with multiple large players outside the cannabis industry. Or maybe Imperial Brands would have picked Aphria or Aurora Cannabis, both of which rank in the top three in production capacity.
Imperial Brands, maker of Davidoff and Gauloises cigarettes, has made its biggest investment yet in the cannabis sector with a £75m deal to take a stake in Canadian company Auxly Cannabis Group.
But the tobacco giant instead went with a relatively small company, Auxly Cannabis Group Inc (NASDAQOTH: CBWTF). Before the announcement of the deal with Imperial Brands, Auxly’s market cap was only around $330 million.
Auxly Cannabis Group Inc. operates as an integrated cannabis company. The company engages in the cultivation of cannabis; and development and distribution of cannabis products. It also offers products through its retail store. The company was formerly known as Cannabis Wheaton Income Corp. and changed its name to Auxly Cannabis Group Inc. in June 2018. Auxly Cannabis Group Inc. was incorporated in 1987 and is based in Vancouver, Canada.
But what Auxly lacks in size, it makes up for with its wide scope of operations. The company is more than just a cannabis producer. It spans the cannabis supply chain, including upstream cultivation, midstream extraction and processing, and downstream distribution and sales.