Dosecann get Dealer's License & the global market beckons

Auxly Cannabis Group's (CBWTF) subsidiary, Dosecann, has obtained a Dealer's License for Controlled Drugs and Substances from Health Canada for Dosecann's purpose built 42,000 square foot facility. This allows Dosecann to serve as a central mid-stream hub to Auxly and its subsidiaries and partners in the development and manufacturing of value-added cannabis products. The License authorises Dosecann to engage in various activities related to manufacturing of cannabis oils and resins through extraction of dried cannabis flower, production of authorised cannabis products, product formulation, research and development and quality testing. In addition, the License permits the import of input materials and the export of finished cannabis products to international markets for medical and scientific purposes.


Yes, this is good news for Dosecann and certainly will help them in supplying product to the international market, but we do not see this as big news for Auxly. We continue to sit on the sidelines and watch as we are not convinced in their business model and/or their management.

The fact remains that Auxly's streaming model is still very questionable. First off, it will not be revenue producing until many of their streaming partners are actually producing significant volumes of cannabis (mid 2020 at best) and by the time they do all start producing in large enough volumes, we believe that supply would have caught up with demand and hence the wholesale value of cannabis will decline steeply, greatly impacting the future cash flow model that underpins their business valuation

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Mark Bernberg
Mark Bernberg

Mark Bernberg is a long-time cannabis investing enthusiast and founder of The Green Fund, Asia Pacific's preeminent media house, positioned at the forefront of the global cannabis industry.

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