Who Owns Auxly Company?

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Who Owns Auxly Cannabis Group Inc.?

Understanding a company's ownership is key to grasping its strategic direction and market standing. Recently, a significant debt-to-equity conversion by Imperial Brands plc has notably altered the financial landscape of Auxly Cannabis Group Inc., a prominent Canadian cannabis company.

Auxly, a publicly traded entity on the TSX (XLY) and OTCQB (CBWTF), aims to enhance consumer well-being through quality cannabis products. As of Q2 2025, Auxly holds the third-largest market share among Canadian Licensed Producers at 6.2%, a testament to its growing influence.

Imperial Brands plc's conversion of debt into equity has significantly impacted Auxly's ownership structure. This strategic move by Imperial Brands, a major player in the global consumer staples sector, likely aims to strengthen its influence and commitment to Auxly's growth trajectory. The company's financial performance, including net revenues of $38.8 million in Q2 2025, a 33% year-over-year increase, underscores its market vitality. For a deeper dive into the external factors influencing Auxly's operations, consider the Auxly PESTEL Analysis.

While corporate records indicate the company was founded in 1987, its transformation into a significant cannabis entity began in 2017. This pivotal year saw Co-Founder and CEO Hugo Alves, alongside Co-Founder and President Mike Lickver, spearhead the strategic development of the company into a vertically integrated cannabis leader.

Founding Vision

Hugo Alves' vision centers on enhancing lives through accessible, high-quality cannabis products. This consumer-focused philosophy guided early strategic decisions and capital allocation.

Strategic Pivot

In 2017, a conscious decision was made to actively build the company into a vertically integrated cannabis leader. This marked a significant shift in its operational and strategic direction.

Early Capitalization

While specific details on initial angel or friends and family investments are not publicly detailed, the founders' vision heavily influenced early capital strategies.

Key Early Stakeholder

Imperial Brands plc made a significant initial investment in 2019. This marked a crucial early backing that would later develop into a substantial ownership position.

Leadership Experience

CEO Hugo Alves brought extensive experience from highly regulated industries, including establishing a prominent cannabis law practice as a senior partner at a leading law firm.

Ownership Evolution

The early ownership structure was shaped by the founders' strategic intent. Public records do not prominently disclose details regarding initial ownership disputes or buyouts.

The foundational ownership of the company was established by its key leaders, Hugo Alves and Mike Lickver, who steered its strategic direction towards becoming a vertically integrated cannabis entity. Alves' background, with over 20 years in regulated industries and a significant role in developing cannabis law practices, provided a strong foundation for navigating the complexities of the sector. His stated mission to improve lives through cannabis products has been a guiding principle, influencing early operational and financial decisions. The company's trajectory saw a significant development in 2019 with the initial investment from Imperial Brands plc, a move that would later solidify into a substantial ownership stake, underscoring the company's growing prominence and potential. Understanding the Mission, Vision & Core Values of Auxly provides insight into the early strategic drivers.

Founders and Strategic Direction

Hugo Alves and Mike Lickver are credited as the driving forces behind the company's current structure, focusing on vertical integration within the cannabis market.

• Co-Founder and CEO: Hugo Alves
• Co-Founder and President: Mike Lickver
• Strategic focus initiated in 2017
• Alves' extensive experience in regulated industries

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The ownership structure of Auxly Cannabis Group Inc. has undergone significant transformation, notably influenced by a major debt-to-equity conversion in 2024. This strategic move by a key investor has reshaped the company's stakeholder landscape and financial standing.

Imperial Brands plc emerged as a significant stakeholder in Auxly Cannabis Group Inc. following its conversion of over $123 million in debt to equity in 2024. As of July 8, 2025, this conversion resulted in Imperial Brands plc holding approximately 19.9% of the company's issued and outstanding shares. This strategic infusion has substantially bolstered Auxly's financial health, leading to a 56% reduction in total debt during 2024 and alleviating 'going concern' uncertainties, thereby enhancing its balance sheet and providing greater operational flexibility. The broader ownership base is dominated by the general public, holding around 77% of the shares. Private companies account for an additional 18.4%, while company insiders, including CEO Hugo Alves who directly owns 3.29% (valued at approximately CA$7.07 million as of August 2025), collectively hold about 4.57%. Institutional ownership is minimal, with a few specific entities like CNBS - Amplify Seymour Cannabis ETF, Pinnacle Wealth Management Advisory Group, LLC, Bard Financial Services, Inc., and ORG Wealth Partners, LLC holding a combined 0.16% of the shares traded on the TSX. Understanding the Target Market of Auxly can provide further context to these ownership dynamics.

Key Ownership Insights

Imperial Brands plc is a major stakeholder, holding 19.9% of Auxly's shares after a significant debt-to-equity conversion.

• The general public represents the largest ownership segment at approximately 77%.
• Private companies hold a substantial 18.4% stake in Auxly Cannabis Group.
• CEO Hugo Alves is a notable insider owner with a 3.29% direct shareholding.
• Institutional ownership is minimal, comprising only about 0.16% of the total shares.

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The current Board of Directors for Auxly Cannabis Group Inc. is comprised of key leadership and independent voices, ensuring robust governance. As of June 30, 2025, the board includes CEO Hugo Alves and independent directors Genevieve Young (Chairman), Troy Grant, Vikram Bawa, and Conrad Tate.

The voting power within Auxly Cannabis Group Inc. is structured on a one-share-one-vote basis for its common shares, a system that was evident during the shareholder meeting where 28.23% of the issued and outstanding common shares were represented. While the company does not publicly detail specific dual-class share structures or special voting rights, the significant ownership stake of 19.9% held by Imperial Brands plc, its largest strategic investor, grants it considerable influence over strategic direction and corporate governance matters. CEO Hugo Alves also holds a notable direct ownership of 3.29% of the company's shares, aligning his interests closely with those of other shareholders. The company has recently focused on financial strengthening through substantial debt reduction, which has positively impacted its decision-making capabilities by easing previous financial pressures. Understanding the Competitors Landscape of Auxly can provide further context on its market position and strategic alliances.

Key Ownership and Governance Insights

Auxly Cannabis Group Inc.'s ownership structure is influenced by its largest strategic investor and executive leadership. The board's composition aims to balance operational expertise with independent oversight.

• Voting is based on a one-share-one-vote system.
• Imperial Brands plc holds a significant 19.9% ownership stake.
• CEO Hugo Alves directly owns 3.29% of the company's shares.
• The board includes a mix of executive and independent directors.

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Over the past three to five years, Auxly Cannabis Group Inc. has seen significant shifts in its ownership structure, largely due to strategic financial maneuvers. A pivotal event in 2024 was the conversion of over $123 million in debt owed to Imperial Brands plc into equity, resulting in Imperial Brands plc holding approximately 19.9% of Auxly's shares as of July 8, 2025.

These financial adjustments have substantially reshaped Auxly's ownership landscape. The conversion of debt to equity not only reduced Auxly's total debt by 56% in 2024 but also eliminated approximately $21 million in debt and lowered annual debt-service obligations by about $700,000. Furthermore, an amended credit facility with the Bank of Montreal, extended in July 2025, provided a new $10 million revolving facility. These actions were instrumental in removing the 'going concern' uncertainty from the company's financial statements, leading to a pro-forma net working capital surplus of $35 million as of Q2 2025.

Imperial Brands plc's Stake

Imperial Brands plc is now a significant shareholder, holding 19.9% of Auxly's equity after a substantial debt conversion in 2024.

Founder's Position

Founder Hugo Alves maintains a direct ownership stake of 3.29% in the company.

Institutional Investor Activity

Institutional ownership currently stands at a modest 0.16% as of August 2025, though recent insider buying suggests internal confidence.

Market Position and Future Outlook

Auxly remains the 3rd largest Canadian Licensed Producer with a 6.2% market share in Q2 2025, focusing on profitable growth. There are no current public plans for privatization or new listings, indicating a stable public trading status for now. For a deeper understanding of the company's journey, explore the Brief History of Auxly.

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