Cedar Grove bets on cannabis for the first time, backing $283M Auxly
What's the deal? Cedar Grove Capital made its first official cannabis investment, adding Auxly Cannabis GroupDealroom has a profile for this one. Try Dealroom → (TSX: XLY) to its portfolio on October 15, 2026. The fund built the position during the third quarter of 2026, citing Auxly's growth potential.
What does Auxly do? The Toronto-listed company describes itself as a consumer packaged goods business in the Canadian cannabis products market. Its shares traded at US$2.46 in Toronto on October 22, within a 52-week range of US$1.13 to US$2.75, giving it a market capitalisation of US$253.6M.
Why now? The move follows a record quarter. For the three months ended June 30, 2026, Auxly reported net revenue of US$33.6M, up 18% year over year, and adjusted EBITDA of US$10.5M, up 24%.
Gross margin rose to 55% from 52% a year earlier. Net income was US$5.65M, or $0.08 per basic share, roughly flat against US$6.09M a year earlier.
What's changed for the stock? Auxly completed a 14:1 share consolidation effective July 28, 2026, which chief executive officer Hugo Alves said was meant to "strengthen our capital structure and improve our capital markets quality." It has also been repurchasing shares under its buyback programme.
What's next? Alves will present Auxly at Planet MicroCap Toronto on October 28, 2026, at 10:30 local time, with a webcast planned.
The signal: The near-flat net income against rising revenue and margins marks the gap between operating gains and bottom-line results. Cedar Grove's entry is a notable vote of institutional confidence, but without a disclosed position size, it is not evidence of a broader shift back into cannabis equities.
Read more: ad-hoc-news.de
Image credit: Auxly Cannabis Group
