Auxly’s ($XLY) $25MM ‘Standby’ facility announced in late April is getting hit like a piñata lately. After an initial $1.25MM, It was followed a month later with a $2MM raise, and this morning another $3MM in convertibles under the program were issued.

Every one of the issues has been tracking with the stock price (as ‘at the money’ programs do), and half warrants attach as well.

The dribs and drabs of capital coming in are in stark contrast to the *cash-flush-popping-with-expectation* that Auxly was showing just a scant couple of quarters ago. The lack of information available around Sunens should be concerning to investors, while pulling incremental amounts of the $25MM facility are just plain expensive. One could read much into it, and not much of that would be positive.

$XLY quietly filed a shelf in mid-May, the same day they filed their annual information form. It appears uptake for it either hasn’t materialized, or perhaps it’s still in regulatory. It’s timely, inasmuch as I was pretty upbeat about their last quarter on our podcast. I think that quarter is a good news story to be honest, but these raises might be demonstrating that they’ll need to keep hitting line drives for awhile.

For the humble investor, or anyone interested in a particular company, I strongly recommend reading their Annual Information Form (AIF), which is a required document for companies to publish per securities legislation. If one wants to see the guts of an outfit, the AIF is the place to go.

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Harvest One $HVT) announced that it’s primary investor and largest shareholder – MMJ Group Holdings – has deferred repayment of a $2MM secured loan. This, HVT says, is an example of continued support of their Strategic Review.

I guess continued support of the ‘Review’ is good, even if it is for only 5 weeks. Given $HVT only has $760k in cash, $16MM in inventory, and net liabilities of $11MM…..there doesn’t look like there’s anywhere to turn. Sales fell off a cliff last quarter, and the latest financials have been delayed under the blanket order allowing companies to defer publishing them due to COVID. Barring an Act of God, this one looks like it’s going out not with a bang, but with a whimper.

The preceding is the opinion of the author, and is in no way intended to be a recommendation to buy or sell any security or derivative. The author holds no position in $HVT or $XLY