Why Auxly Cannabis Is Consolidating Its Shares 14-For-1

Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) said on Wednesday that it will consolidate its shares on a 14:1 basis. The move reduces the share count, leaving each shareholder’s proportional ownership unchanged.

What Happened

The company’s board gave the green light to consolidation on June 30, selecting the 14:1 ratio. The company anticipates post-consolidation trading to start on the TSX around July 28, 2026, under the existing ticker XLY, while OTCQB: CBWTF remains unchanged, the company said in a press release.

The outstanding shares will decrease from roughly 1.42 billion to 101.3 million, subject to fractional share adjustments, Auxly said.

Why It Matters

CEO Hugo Alves said the move is made from a position of strength. He highlighted record financial performance in 2015, a strong balance sheet, and continued improvement in the first quarter of fiscal 2026, to name a few.

“Coming off a record year in 2025, our financial results continue to strengthen, our balance sheet is the strongest it has been in years, and we have a disciplined framework for deploying capital where it can generate the highest returns for our shareholders,” Alves said. “We are building to last, and our outlook is for continued growth in net revenue, profitability and cash flow generation.”

Alves said this move doesn’t represent a step toward a financing or share dilution. The NCIB share buyback program demonstrates the company is buying back its shares, not issuing new ones.

CBWTF Price Action

Auxly’s shares traded 6.15% higher at $0.138 per share at the time of writing on Thursday.

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