marijuana stocks top penny stocks to watch

Marijuana stocks can be highly volatile. It’s true that the cannabis sector is currently going through a bit of churn after growing at a breakneck pace for some time. But many companies are still doing significant deals to further enhance their profile in the industry. Also, keep in mind that many of these companies are considered penny stocks, currently. Though the industry itself has growing to do, the market for marijuana stocks may still be in its adolescence as well.

Marijuana Stocks To Watch: Auxly Cannabis Group

In a new development, Auxly Cannabis Group Inc (TSXV:XLY) (CBWTF Stock Report), has reached an agreement with British tobacco giant Imperial Brands in a $123 million deal. The deal gives Imperial a 19.9% stake in Auxly through convertible debentures. The conversion feature includes a conversion rate of 81 cents for each share. In addition to that, Auxly will get a worldwide license towards using Imperial’s vaping technology in its own products.

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It is a hugely significant deal for Auxly. Despite the current difficulties in the market, the company remains an attractive company to watch. Moreover, the tie-up with such a colossal brand gives Auxly the much-needed expertise needed to grow further.

Hugo Alvez, President of Auxly, spoke on the deal and expressed his thoughts in an interview.

“The strategic partnership really enhances our ability to execute on our business strategy and accelerates our growth plan. So we are taking in a significant capital injection at a premium to our share price in a difficult market.”

Auxly is trying to launch a new generation of products soon and the infusion of capital will go a long way in accomplishing that goal. The significance of the deal was recognized by the wider market as well. CBWTF stock soon started surging after this. On July 25, Auxly Cannabis Group stock rose by as much as 22% to $0.68 on the OTC market. Friday saw the marijuana stock jump to new highs of $0.71 on the back of the announcement. Will you add this to your penny stocks to watch list?

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