CAN: Auxly repays $5 million inventory loan

Auxly Cannabis Group has announced that it has repaid in full all principal and interest outstanding on its $5 million inventory loan owing to GrassHopper Capital. The loan repayment was paid with cash on hand and is expected to result in annualized interest expense savings of approximately $900,000.

"We would like to thank GrassHopper for its financial support and partnership over the past two years. Our business is growing profitably and is now in the position to strategically allocate capital. Our revenue is growing and our stable cost base is providing operating leverage to our profitability which is translating to free cash flow. We will continue to evaluate capital allocation decisions prioritizing organic growth investments and strengthening our balance sheet. In this case, solidifying our balance sheet and reducing interest expense was an obvious choice for deploying our excess cash," said Hugo Alves, Chief Executive Officer of Auxly.