Mining & Metals
Auxly Cannabis Updated On Stalking Horse Bid for Assets of Ayurcann
Auxly Cannabis Group (XLY.TO) on Monday said that its stalking horse bid for the assets of Ayurcann Holdings Corp. (AYUR.CN) was not selected as the successful bid in the court-supervised sale process.As previously disclosed, the stalking horse bid was submitted in the Ayurcann sale process concurrently with Auxly providing debtor in possession financing to Ayurcann in a principal amount of up to $2.0 million.Pursuant to the terms of the sales process, Auxly's bid has been selected as the "Back-Up Bid" in accordance with the sale process rules and, should the successful bid not close by May 15, 2026, will be the winning bidder at its original stalking horse bid amount.As part of the closing of the successful bid, the DIP Facility will be repaid, including interest, by the successful bidder. Additionally, the Break Fee and Expense Reimbursement contemplated in the stalking horse bid will be paid to the company as part of the closing of the successful bid.Hugo Alves, CEO of Auxly, in a statement said: "Our stalking horse bid for Ayurcann was opportunistic in nature and contingent on exceeding our internal return thresholds. Our team will continue to pursue non-organic growth opportunities with vigilance where there is a strong strategic fit and, in the meantime, we can continue to focus on growing our business organically. We expect to generate significant free cash flow in 2026 and we are evaluating all our capital allocation alternatives to maximize shareholder value."Shares of Auxly were last seen unchanged at $0.125 on the Toronto Stock Exchange.
$AYUR.CN$HMMJ.TO$XLY.TO