TORONTO, July 28, 2026, 13:03 EDT — Shares of Auxly Cannabis climbed after the Toronto Stock Exchange opened, following a 14-for-1 share consolidation. The company’s implied valuation stands near C$263 million.
- Auxly gained 3.2% to reach C$2.60 in its initial trading session after consolidation.
- The estimated number of shares fell to approximately 101.3 million after the consolidation.
- A preliminary estimate values the enterprise at approximately 5.4 times the annualized adjusted EBITDA from Q1.
Shares of Auxly Cannabis Group Inc. TSE:XLY gained 3.2% to reach C$2.60 as of 12:41 p.m. EDT. The stock moved within a range of C$2.50 to C$2.70.
The change came after the debut session of a 14-for-1 reverse stock split. One new share replaced every fourteen existing shares. Investors’ ownership stakes were unaffected, except for adjustments due to rounding of fractional shares.
Auxly anticipated its number of shares to decrease from 1.419 billion to approximately 101.3 million. With shares at C$2.60, this suggests an equity valuation of roughly C$263 million.
Certain market data had yet to update.
Google Finance showed a market cap of C$3.70 billion and 102.26 million shares. Both figures cannot be correct. The share price and share count combine to roughly C$266 million, indicating a possible delay in reflecting a stock split.
The basis for valuation hinges on Auxly’s operating performance rather than its updated price tag. First-quarter revenue increased by 22% to C$39.8 million, while adjusted EBITDA grew by 65% to C$12.3 million, representing 31% of revenue. Operating cash flow, excluding changes in working capital, stood at C$11.3 million.
The company reported cash of C$42.7 million as of March 31, with debt totaling C$45.0 million. These numbers bring the initial split-adjusted enterprise value to approximately C$266 million.
If Q1 adjusted EBITDA is annualized, the figure is approximately C$49 million. The initial multiple calculated from this is around 5.4 times. This does not represent company guidance.
The projection is based on first-quarter results being sustained. It is also calculated using the balance sheet as of the end of the quarter. Auxly projects growth capital expenditures between C$10 million and C$12 million in 2026.
Chief Executive Hugo Alves stated the consolidation is “not a precursor to a financing or any other dilution.” Alves referred to Auxly as “buyers of our shares, not issuers.” The current buyback authorization remains valid until April 2027. Auxly
The most directly comparable public companies are Decibel Cannabis Company Inc. (CVE:DB) and Organigram Global Inc. (NASDAQ:OGI).
| Quarter ended March 31, 2026 | Net revenue, C$m | Year-on-year | Adjusted EBITDA, C$m | EBITDA margin | Gross-margin measure |
|---|---|---|---|---|---|
| Auxly | 39.8 | +22% | 12.3 | 30.8% | 55% |
| Decibel | 29.8 | +41% | 6.9 | 23.2% | 51% |
| Organigram | 59.8 | -9% | 0.9 | 1.5% | 31% |
Definitions vary by company. Auxly tracks finished cannabis inventory that has been sold. Decibel omits fair-value adjustments. Organigram provides adjusted gross margin.
Auxly posted the highest EBITDA margin among these companies. Decibel saw the fastest growth, and Organigram reported higher overall revenue. The figures are indicative, as non-GAAP definitions differ.
The initial gauge for management’s assertion about market quality is liquidity. By 12:41 p.m., approximately 47,600 shares had changed hands, which represents about 0.05% of Auxly’s projected share count following the split.
The initial rise was supported by modest turnover. Larger volumes would provide more convincing proof that the higher nominal price broadened investor participation.
Risks: Pressure on vape pricing could hamper revenue expansion. Adjustments to biological value continue to fluctuate. Upcoming capital expenditures might lower free cash flow, even as operating cash generation improves.
The split altered the unit. Stock performance now depends on earnings.
