Auxly Cannabis Group

In 2017, Hugo Alves and Chuck Rifici, two figures with deep roots in cannabis law and business, launched Auxly Cannabis Group, then known as Cannabis Wheaton Income Corp. Initially, their strategy was unique in the burgeoning Canadian cannabis scene: instead of cultivating cannabis themselves, they would finance other licensed producers in exchange for a stream of their product. A significant shift in their playbook occurred in July 2019 when tobacco giant Imperial Brands invested approximately $123 million. This deal was more than just a capital injection; it provided Auxly with global licenses to Imperial's vaping technology, signaling a strategic pivot towards becoming a consumer packaged goods (CPG) company focused on derivative products. Shortly after, in August 2019, co-founder Hugo Alves took the helm as CEO to lead this new chapter. By April 2021, the company had evolved enough to graduate from the TSX Venture Exchange to the Toronto Stock Exchange, trading under its familiar "XLY" symbol. The relationship with their major backer, Imperial Brands, continued to evolve. In April 2024, Imperial Brands converted its $123.4 million in debt into a 19.8% ownership stake in Auxly, solidifying its position as the largest shareholder and significantly strengthening Auxly's balance sheet.