Auxly Repays $5 Million Inventory Loan
Auxly Cannabis Group (OTCQB: CBWTF, TSX: XLY) announced on Oct 27, 2025 that it repaid in full a $5 million inventory loan owed to GrassHopper Capital using cash on hand. The company expects annualized interest expense savings of approximately $900,000 as a result.
Management said revenue growth and operating leverage have produced free cash flow, allowing Auxly to prioritize organic investment and strengthen the balance sheet by eliminating the loan and reducing recurring interest costs.
Auxly Cannabis Group (OTCQB: CBWTF, TSX: XLY) ha annunciato il 27 ottobre 2025 che ha estinto completamente un prestito per inventario di 5 milioni di dollari dovuto a GrassHopper Capital utilizzando la liquidità disponibile. L'azienda si aspetta un risparmio annuo sugli oneri d'interessi di circa 900.000 dollari come risultato.
La direzione ha dichiarato che la crescita dei ricavi e la leva operativa hanno generato flussi di cassa liberi, consentendo ad Auxly di dare priorità agli investimenti organici e di rafforzare il bilancio eliminando il prestito e riducendo i costi degli interessi ricorrenti.
Auxly Cannabis Group (OTCQB: CBWTF, TSX: XLY) anunció el 27 de octubre de 2025 que había pagado por completo un préstamo de inventario de 5 millones de dólares a GrassHopper Capital utilizando efectivo disponible. Se espera que la empresa ahorre aproximadamente $900,000 al año en gastos de intereses como resultado.
La dirección dijo que el crecimiento de ingresos y el apalancamiento operativo han generado flujo de caja libre, lo que permite a Auxly priorizar la inversión orgánica y fortalecer el balance eliminando el préstamo y reduciendo los costos de intereses recurrentes.
Auxly Cannabis Group (OTCQB: CBWTF, TSX: XLY)가 2025년 10월 27일에 GrassHopper Capital에 빚진 500만 달러 재고 대출을 전액 상환했다고 현금 보유로 발표했다. 그 결과 회사는 연간 이자비용 절감 약 90만 달러의 효과를 기대한다.
경영진은 매출 성장과 운전자본 레버리지가 자유현금흐름을 창출해 Auxly가 유기적 투자에 우선순위를 두고 대출을 상환하고 재발생 이자비용을 줄임으로써 대차대조표를 강화할 수 있다고 말했다.
Auxly Cannabis Group (OTCQB: CBWTF, TSX: XLY) a annoncé le 27 octobre 2025 qu’elle avait intégralement remboursé un prêt d’inventaire de 5 millions de dollars dû à GrassHopper Capital en utilisant sa trésorerie disponible. L’entreprise s’attend à une économie des charges d’intérêts annuelles d’environ 900 000 dollars en conséquence.
La direction a déclaré que la croissance du chiffre d’affaires et l’effet de levier opérationnel ont généré des flux de trésorerie disponibles, permettant à Auxly de donner la priorité à l’investissement organique et de renforcer le bilan en éliminant le prêt et en réduisant les coûts d’intérêts récurrents.
Auxly Cannabis Group (OTCQB: CBWTF, TSX: XLY) gab am 27. Oktober 2025 bekannt, dass es einen 5-Millionen-Dollar-Inventurkredit vollständig zurückgezahlt hat und zwar mit Barmitteln. Das Unternehmen erwartet infolgedessen jährliche Zinssparnisse in Höhe von ca. 900.000 USD.
Das Management erklärte, dass Umsatzwachstum und Betriebshebel freien Cashflow geschaffen hätten, der Auxly ermögliche, in organisches Wachstum zu investieren und die Bilanz zu stärken, indem der Kredit getilgt und wiederkehrende Zinskosten reduziert werden.
Auxly Cannabis Group (OTCQB: CBWTF, TSX: XLY) أعلنت في 27 أكتوبر 2025 أنها سدّدت قرض مخزون بقيمة 5 ملايين دولار بشكل كامل لشركة GrassHopper Capital باستخدام النقد المتاح لديها. وتتوقع الشركة توفير ما يقرب من 900,000 دولار أمريكي سنوياً في مصروفات الفائدة كنتيجة لذلك.
قالت الإدارة إن نمو الإيرادات والرافعة التشغيلية قد أنتجت تدفقاً نقدياً حراً، مما سمح لـ Auxly بإعطاء الأولوية للاستثمار الذاتي وتقوية الميزانية من خلال القضاء على القرض وتقليل تكاليف الفائدة المتكررة.
Auxly Cannabis Group (OTCQB: CBWTF, TSX: XLY) 于 2025年10月27日 宣布 已用手头现金将对 GrassHopper Capital 的5百万美元库存贷款全额偿清。公司因此预计将实现 大约90万美元的年化利息支出节省。
管理层表示，收入增长和运营杠杆带来自由现金流，使 Auxly 能够优先进行有机投资并通过清偿贷款和降低经常性利息成本来加强资产负债表。
- $5.0M inventory loan repaid in full
- Estimated $900K annualized interest expense savings
- Repayment funded with cash on hand, signaling stronger liquidity management
- Company reports revenue growth and translating free cash flow
- $5.0M cash outflow reduces available cash reserves
"We would like to thank GrassHopper for its financial support and partnership over the past two years. Our business is growing profitably and is now in the position to strategically allocate capital. Our revenue is growing and our stable cost base is providing operating leverage to our profitability which is translating to free cash flow. We will continue to evaluate capital allocation decisions prioritizing organic growth investments and strengthening our balance sheet. In this case, solidifying our balance sheet and reducing interest expense was an obvious choice for deploying our excess cash," said Hugo Alves, Chief Executive Officer of Auxly.
About Auxly Cannabis Group Inc.
Auxly is a leading Canadian consumer packaged goods company in the cannabis products market, headquartered in
Our vision is to be a leader in branded cannabis products that deliver on our consumer promise of quality, safety and efficacy.
Learn more at www.auxly.com and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.
Notice Regarding Forward Looking Information:
This news release contains certain "forward‐looking information" within the meaning of applicable Canadian securities law. Forward‐looking information is frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or information that certain events or conditions "may" or "will" occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward‐looking information throughout this news release. Forward‐looking information includes, but is not limited to: the proposed operation of Auxly, its subsidiaries and partners; the intention to grow the business, operations and existing and potential activities of Auxly; the Company's execution of its innovative product development, commercialization strategy and expansion plans; the Company's intention to introduce innovative new cannabis products to the market and the timing thereof; the Company's plans for future capital allocation; the Company's plans to improve or strengthen its balance sheet; the Company's plans for future investments; the expectation, timing and quantum of future revenues; the relevance of Auxly's subsidiaries' current and proposed products with provincial purchasers and consumers; consumer preferences; political change; competition and other risks affecting the Company in particular and the cannabis industry generally.
A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward‐looking information in this release including, but not limited to, whether: the Company will be able to execute on its business strategy or achieve its goals; Auxly's subsidiaries are able to maintain the necessary governmental and regulatory authorizations to conduct business; the Company's subsidiaries maintain all necessary governmental and regulatory permits and approvals for the operation of their facilities and the development of cannabis products; the Company will be able to successfully launch new product formats and enter into new markets; there is acceptance and demand for current and future Company products by consumers and provincial purchasers; the Company will be able to increase and maintain revenues; risks relating to the overall macroeconomic environment, which may impact customer spending, the Company's costs and margins, including tariffs (and related retaliatory measures), the levels of inflation, and interest rates; and general economic, financial market, legislative, regulatory, competitive and political conditions in which the Company and its subsidiaries and partners operate will remain the same. Additional risk factors are disclosed in the annual information form of the Company for the financial year ended December 31, 2024 dated March 20, 2025.
New factors emerge from time to time, and it is not possible for management to predict all of those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward‐looking information. The forward‐looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward‐ looking information speaks only to such assumptions as of the date of this release. In addition, this release may contain forward‐looking information attributed to third party industry sources, the accuracy of which has not been verified by the Company. The forward‐looking information is being provided for the purposes of assisting the reader in understanding the Company's financial performance, financial position and cash flows as at and for periods ended on certain dates and to present information about management's current expectations and plans relating to the future, and the reader is cautioned that such forward‐ looking information may not be appropriate for any other purpose. Readers should not place undue reliance on forward‐looking information contained in this release.
The forward‐looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward‐ looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
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SOURCE Auxly Cannabis Group Inc.
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