Auxly Cannabis Group Inc. (CVE: XLY) Stock Price Testing the Resistances

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Auxly Cannabis Group Inc. (CVE: XLY) stock price has been trying to grow once again, and nullify the losses that it suffered during the late 2018  price crash. The first attempt at growth came in the last days of December 2018, when XLY price managed to surge from $0.5 to around $0.75. However, this was only a brief breach of a large resistance level at $0.7, and the price quickly found itself just below this level once again.

It attempted to breach the barrier two more times in January, but it got dragged back below this level both times. In February and the first half of March, however, it found itself even lower, below $0.6 which also started acting as a resistance during this period. However, both resistances — at $0.6 and $0.7 — were broken in late March when XLY price reached $0.8. This changed yet again once April came, and the price dropped back to $0.6, which was once again followed by a growth that took it up to $0.7 level.

Who is Auxly Cannabis Group?

Auxly Cannabis Group is a Canadian vertically integrated cannabis company that has managed to grow quite a lot in recent years, which allowed it to expand its diverse operations internationally. It came with the idea of providing financial solutions to cannabis license applicants.

This goal allowed the firm to evolve into a massive platform that spans through the entire cannabis value chain. The company’s leadership comprises the industry’s pioneers and visionaries, who have grown to become specialists dedicated to creating value for the company, its shareholders, its partners, but also the entire cannabis industry.

During its expansion, Auxly assembled an entire international community, which includes cultivators, innovators, product developers, as well as distributors — all working towards the same goal of building the world-class industry.

Many of the company’s partners were more than excited to start working with Auxly, and even more — become a part of them.

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Auxly’s problems and return to growth

As mentioned, Auxly suffered a large stock price decline in late 2018, with the first issues starting to appear in September. This was when Auxly announced a strategic investment in FSD Pharma, which was followed by cultivation and retail expansion into Newfoundland and Labrador through another partnership with Atlantic Cultivation.

This was when the company’s stock started dropping regardless of additional partnerships, and the company partners’ success, such as International Cannabis Corp’s (ICC) success in acquiring Portuguese hemp company or cannabis genetics firm, Green Gene Research. Auxly itself managed to acquire another firm, Inverell S.A. The price finally started going up at this point, which was cut short in February 2019 when the company suddenly announced the termination of the joint venture with FSD Pharma, after FSD Pharma made several contractual breaches regarding management, and staffing, as well as due to concerns regarding their cultivation buildings’ infrastructure.

Auxly contacted the company, warning it of breaches and suggesting that the two try to find a solution through mutual efforts. However, FSD Pharma did not remedy the breaches, which forced Auxly to terminate the deal.

As mentioned, this cut the company’s stock price growth short, and Auxly has been trying to fix the situation through multiple moves, such as bolstering its management team and obtaining new cultivation and processing licenses for its partner, Robinsons Cannabis Facility.

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As mentioned, the company’s efforts are paying off, although slowly. The stock price is making attempts at growth, but it will likely take some time. This is why now is the perfect time for interested parties to purchase Auxly’s stock, as the price is still at around $0.65. Auxly will undoubtedly see a recovery in months to come, and a large number of experienced investors is already aware of this. We will be updating on Auxly when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Auxly.

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Disclosure: we hold no position in Auxly either long or short and we have not been compensated for this article.

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