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Corporation
wheatonincome.com

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Investments

1

Portfolio Exits

1

Partners & Customers

6

About Cannabis Wheaton Income

Cannabis Wheaton Income Corp, dba Wheaton Income, is a financial investor for the cannabis industry.

Cannabis Wheaton Income Headquarter Location

777 Richmond St. W. #002

Toronto, Ontario, M6J 0C2,

Canada

647-812-0121

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Expert Collections containing Cannabis Wheaton Income

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Find Cannabis Wheaton Income in 1 Expert Collection, including Cannabis.

C

Cannabis

3,834 items

These companies participate in - or service businesses that participate in - the legal cannabis industry. Our definition of cannabis includes both marijuana and hemp (and all derivatives). The collection includes both "plant-touching" and "non-plant-touching" businesses.

Latest Cannabis Wheaton Income News

Auxly Cannabis: target down but still a buy, says Research Capital

Nov 17, 2021

Research Capital Corporation analyst Venkata Velagapudi has slightly altered his stance on Auxly Cannabis ( Auxly Cannabis Stock Quote, Charts, News, Analysts, Financials TSX:XLY ), reiterating a “Buy” rating but reducing his target price from $0.50/share to $0.45/share for a projected return of 67 per cent in an update to clients on Monday. Originally founded in 1987 as Cannabis Wheaton Income Corp. before changing its name in 2018, Auxly Cannabis is a Toronto-based consumer-packaged goods company in the cannabis products market in Canada with a focus on developing, manufacturing and distributing cannabis products for wellness and recreational consumers. Velagapudi’s latest analysis comes after the company reported its third quarter financial results, with Velagapudi attributing the target drop to lower profitability estimates. “Auxly will continue to gain market-share in Canada, mainly driven by Auxly’s strong position in manufacturing cannabis 2.0 products, the company’s strategic partnership with Imperial Brands and a strong product pipeline,” Velagapudi said. “In our opinion, a sustainable market-share in the Canadian adult-use cannabis market should mainly determine a Canadian LP’s intrinsic value.” The company’s report was headlined by $24.5 million in revenue, a 95 per cent year-over-year improvement as well as representing 17 per cent sequential growth. The result beat the Research Capital projection of $23.3 million for the quarter, though it came in slightly below the consensus expectation of $24.7 million. Auxly reported an adjusted EBITDA loss of $6.5 million in the quarter, significantly missing on the $2.6 million loss projected by the consensus, as well as the Research Capital projection of a $2.7 million loss. Velagapudi’s analysis noted Auxly’s position as a market leader in several categories of cannabis 2.0 and cannabis 1.0 portfolios, though he also noted that the company’s revenue mix has changed over the course of the year, with Cannabis 1.0 products now accounting for 31 per cent of Auxly’s revenue with the rest derived from Cannabis 2.0 product sales, i.e., cannabis derivatives such as edibles, compared to 20 per cent from Cannabis 1.0 products in the same quarter of 2020. Consequently, the company’s gross margin has dropped off with a report of 17.6 per cent in the quarter compared to the Research Capital estimate of a 36.7 per cent margin, with the higher costs related to the production of new products (mainly pre-rolls) and one-off cost of $700,000 related to write down of packaging materials. “We have continued to prudently invest in the people, assets and capabilities that we believe are necessary to win in our chosen consumer segments and product categories and our success in the consumer market is a testament to our focused strategy and our commitment to putting our consumers first and foremost in everything we do,” said Hugo Alves, CEO of Auxly Cannabis in the company’s November 15 press release. “As we finish building our asset base, we will focus on cost optimization and increasing operational throughput efficiencies to enhance margins and increase profitability. We will continue to work tirelessly to serve our consumers by offering them innovative, quality products at a great value under brands that they can trust and love. We are just getting started and we could not be more excited for the future,” said Alves. Despite the target drop, Velagapudi continues to see solid future growth for Auxly, projecting an increase to $81 million in revenue in 2021 from the $51 million reported in 2020 for a potential year-over-year increase of 58.8 per cent, with projections of breaking into nine figures in 2022 ($129 million, 59.3 per cent potential year-over-year increase) and 2023 ($179 million, 38.8 per cent potential year-over-year increase), which is also when the company’s EBITDA is projected to turn positive at $16 million for a margin of nine per cent. Velagapudi also expects the company’s gross margin to settle in at 24 per cent for both 2021 and 2022 before spiking to a forecasted 33 per cent in 2023. Despite the slight target drop, Velagapudi believes Auxly is undervalued considering its current market share and valuation, while also noting consistent improvement in the company’s adult use cannabis market share as well as positive changes to the Canadian regulatory framework as potential catalysts for the company’s growth. “Over the long term, we believe that visibility over positive free cash flow generation will be critical in improving the valuation for Auxly,” Velagapudi said. “Although we expect the margins to dilute due to the growing portion of cannabis 1.0 sales, we believe that the growing revenue base will offset the impact of declining margins leading to an increase in EBITDA gradually.” So far in 2021, Auxly’s share price is now down about one per cent. The stock topped out at $0.49/share on February 10 before hitting a decline, though it has rebounded slightly since bottoming out at $0.21/share on October 15.

Cannabis Wheaton Income Investments

1 Investments

Cannabis Wheaton Income has made 1 investments. Their latest investment was in Inner Spirit Holdings as part of their Corporate Minority on January 1, 2018.

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Cannabis Wheaton Income Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

1/12/2018

Corporate Minority

Inner Spirit Holdings

Yes

1

Date

1/12/2018

Round

Corporate Minority

Company

Inner Spirit Holdings

Amount

New?

Yes

Co-Investors

Sources

1

Cannabis Wheaton Income Portfolio Exits

1 Portfolio Exit

Cannabis Wheaton Income has 1 portfolio exit. Their latest portfolio exit was Inner Spirit Holdings on August 01, 2018.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

8/1/2018

IPO

$99M

Public

1

Date

8/1/2018

Exit

IPO

Companies

Valuation

$99M

Acquirer

Public

Sources

1

Cannabis Wheaton Income Acquisitions

3 Acquisitions

Cannabis Wheaton Income acquired 3 companies. Their latest acquisition was Robinson's Cannabis on April 09, 2018.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

4/9/2018

$99M

Acquired

2

4/4/2018

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$99M

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10

10/31/2017

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$99M

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10

Date

4/9/2018

4/4/2018

10/31/2017

Investment Stage

Companies

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Valuation

$99M

$99M

$99M

Total Funding

Note

Acquired

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Sources

2

10

10

Cannabis Wheaton Income Partners & Customers

6 Partners and customers

Cannabis Wheaton Income has 6 strategic partners and customers. Cannabis Wheaton Income recently partnered with Dixie Brands on May 5, 2018.

Date

Type

Business Partner

Country

News Snippet

Sources

5/14/2018

Licensor

United States

Dixie Brands Licenses IP and Formulations to Cannabis Wheaton

Now , our partnership with Cannabis Wheaton will greatly broaden the reach of Dixie Brands , Inc. 's product portfolio as they begin distribution throughout Canada and Mexico .

2

3/23/2018

Partner

Canada

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10

2/9/2018

Partner

China

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10

1/17/2018

Vendor

Canada

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10

5/29/2017

Partner

Germany

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10

Date

5/14/2018

3/23/2018

2/9/2018

1/17/2018

5/29/2017

Type

Licensor

Partner

Partner

Vendor

Partner

Business Partner

Country

United States

Canada

China

Canada

Germany

News Snippet

Dixie Brands Licenses IP and Formulations to Cannabis Wheaton

Now , our partnership with Cannabis Wheaton will greatly broaden the reach of Dixie Brands , Inc. 's product portfolio as they begin distribution throughout Canada and Mexico .

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Sources

2

10

10

10

10

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