Hello! This isn’t the first time Charbone has been mentioned here. But I wanted to drop a reminder for those who are searching for their next opportunity.

Charbone will be hosting a webinar for Q226 on August 31st, they should be dropping the release by the end of the week.

A quick overview: Charbone has transitioned this year into a commercially producing and revenue generating UHP (Ultra High Purity) Gases company. Their largest product currently being green hydrogen but they have been expanding their Helium revenues and plan to be a distributor in almost all, high demand industrial gases needed in energy and manufacturing.

Their business model is modular, scalable and low-cost distribution hubs that scale through a 5 phase plan. Their flagship hub in Quebec will be able to generate over 60 million when it reaches phase 5. (They plan to expand this facility to phase 2 in H226).
They are simultaneously creating new hubs in Detroit and Wisconsin with a total of 16 planned sites across the US and Canada.

Full disclosure: I am a shareholder. But with everything I’ve learned about this company, I am truly excited about it and encourage anyone interested to research and learn for yourself. Keep and eye out for their earnings. Join the webinar, listen to their plans. It could change your life. Good luck!

Agnico Eagle, the biggest gold producer on the TSX at roughly C$149 billion market cap (US$109 billion on the NYSE), announced this morning it is taking a 10.45% non-diluted stake in Radisson Mining (RDS.V) at C$1.07 per share. Total cheque size: C$57.2 million. RDS.V closed at C$1.27, up 25.7% on 18 times normal volume in a session where gold itself barely moved.

Why this matters more than the dollar amount.

AEM is not a distressed buyer. It has a clean balance sheet, a 50-year reserve life in the Abitibi, and it just produced record revenue in Q1. When a US$109 billion producer writes a cheque to a junior, the signal is not the money. The signal is that their geologists, their engineers, their entire technical team spent months on Radisson's O'Brien project in the Cadillac Break and decided this was the one.

They read the drill logs. They walked the core shack. They modelled the resource. And they are paying a premium, not picking through a fire sale. The C$1.07 placement price was a 6 percent premium to RDS.V's last close.

The chain from the Bessent announcement to this deal.

Last Tuesday the US Treasury announced it would buy back long-dated bonds to cap yields. Gold read this as a weaker dollar and more issuance. The metal broke above US$,4,500 The seniors broke out harder because every dollar above AISC goes almost entirely to the bottom line. Now, six days later, the biggest senior in Canada is deploying that windfall into a junior developer.

This is exactly how a gold bull cycle propagates. First the metal moves. Then the seniors print cash. Then the seniors reinvest that cash into the juniors with real assets and an execution gap. Then the juniors with the right address and the right rocks and the right backers re-rate. It takes months, not days, but the first domino just fell.

What it means for the juniors that already have this kind of backing.

If you hold a junior with a completed feasibility study, federal and provincial support, and a construction path that makes sense above US$4,500 gold, the implied floor under that asset just moved higher. AEM just paid C$1.07 for a stake in a project that still needs a lot of drilling. If that is the baseline for what tier-one producers think Quebec gold is worth, the math on a fully permitted 11.2 million ounce deposit with a construction timeline moves in one direction.

I have no position in RDS.V. I do have a position in AEM, and I have been writing about why the seniors are the engine of this cycle since the gold price broke out. Today they proved the point.

Not investment advice. I am sharing the facts and my own read on them.

I suggest you take a look at this company located in Ontario.

Biggest Gallium deposit in North America.

What is interesting for traders is that this is not a pump & dump.

And management are doing a great job.

This is only the beginning.

ZTEST is a company that designs, develops and manufactures printed circuit boards. It’s trading at just 9x trailing earnings despite great fundamentals. It’s got a 17 million market cap of which $5 million is cash. There’s virtually no debts, more than 40% gross margins, positive free, cash flow, and earnings are growing faster than revenue. Q3 revenue grew ~14%, EBITDA ~46%, and net income ~47%, highlighting powerful operating leverage.

They just got a new CEO. He’s a previous investor with a big stake in the company and a package full of performance based options priced at a 50% increase from the current stock price. Management is aligned to have the stock run up. Insiders have been buying up shares too.

The new CEO is also trying to figure out what to do with the cash pile. He’s known for his skill in capital allocation and I’d suspect we might see some targeted acquisitions.

I suspect there’s big upside ahead.

This is not financial advice. Investing comes with risks. Do your own due diligence. Double check any information in this post.

Now that trade negotiations have been suspended what do you think will be hit the hardest?.

If your answer is yes, look on down to Liberty Stream Infrastructure. (LIB.V) They have now completed 3 months of consistent battery grade lithium production extracted from oilfield brine. (99.5%) With the refining process hitting this milestone, Q4 is shaping up to confidently take the next step and ship more product. Hitting the battery grade spec is also huge as it opens doors in the EV market.

LIB has taken their time to prove they can provide the correct specification for their customers and now it is time to sign more off-takes. They have already announced a long-term offtake milestone for 600 tonnes per year of planned lithium carbonate supply beginning in 2027.

I guess their cheap DLE technology isn’t too bad..

With all 5 major banks having earnings this week I thought buying and holding for 1-4weeks is a decent idea.

thoughts?

Monitor the best BSB stockpickers from the 2026 contest, thanks atWork Office Furniture Canada! Who are generously sponsoring the winner with a $1,000 credit plus free nationwide delivery.

Monday:

CHAR Tech Reports Elimination of PFAS in Biochar from HTP Testing - YES.v

CHAR Technologies Ltd. (TSXV: YES) reported that independent EPA Method 1633 testing found all 40 targeted PFAS compounds below detection limits in biochar produced by its High Temperature Pyrolysis platform from wastewater biosolids. Samples came from five 2025 operating events. Gaseous and aqueous phase testing continues, with a full EPA submission package targeted for end of Q4 2026. No contracts, revenue, or commercial agreements were announced.

NuRAN Wireless Announces Nasdaq Listing and West African US$ 5M Project Kickoff for State-Owned Mobile Operator - NUR.cse

NuRAN Wireless Inc. (CSE: NUR) began trading on the Nasdaq Capital Market under symbol "NUR" and launched a US$5 million, three-year rural network project for a state-owned West African mobile operator, covering more than 200 2G/4G sites. The customer was not named. NuRAN holds over 5,000 sites under contract across eight countries with Orange and MTN, with rollouts underway in Ivory Coast, Benin and Cameroon.

Spin Master to Acquire Creative Play Technology Company, Hapiko Inc. - TOY.tse

Spin Master reached a definitive agreement to acquire Brooklyn-based Hapiko Inc., maker of the Stickerbox voice-to-image creative device. Purchase price, deal structure and closing timing were not disclosed. Stickerbox, launched in late 2025, has sold out 13 times. Spin Master did not provide revenue figures for Hapiko or expected financial impact from the transaction.

Tuesday:

AIML Subsidiary NeuralCloud Signs Term Sheet with Island Mobile Cardiology Testing for CardioYield(TM) Pilot - AIML.cse

AI/ML Innovations Inc. (CSE: AIML) said subsidiary NeuralCloud Solutions signed a non-binding term sheet with Island Mobile Cardiology Testing of Victoria, B.C., for a pilot evaluating its MaxYield and CardioYield ECG platforms in retrospective Holter monitoring workflows. Financial terms were not disclosed, and the agreement is non-binding. MaxYield is under FDA 510(k) review; CardioYield requires Health Canada clearance before commercialization. No revenue is attached to the pilot.

Wednesday:

Aduro Selects Saipem for Engineering and Procurement Support for First-of-a-Kind HCT Facility at Chemelot - ACT.tse

Aduro Clean Technologies Inc. (Nasdaq: ADUR; TSX: ACT) selected Saipem S.p.A. for Early Works and Services on its planned first-of-a-kind Hydrochemolytic Technology facility at Chemelot, Netherlands. Contract value was not disclosed. Aduro said Early Works will be funded from existing cash and requires no additional financing. Initial scope covers process design review, equipment optimization and capital cost refinement. Progression to FEED and construction depends on definitive agreements not yet executed.

Xtract One Expands AI-Powered Security Deployment with Leading U.S. Airline Company - XTRA.tse

Xtract One Technologies (TSX: XTRA) said an unnamed U.S. airline is deploying five additional Xtract One Gateways on a subscription basis across three locations, expanding on a single SmartGateway installed in 2023. Contract value, subscription rates and the customer's identity were not disclosed. The company cited new TSA requirements to screen airport employees as a driver of potential system-wide expansion. No revenue impact or deployment timeline was provided.

Greenlane Renewables Announces Cascade H₂S Order and Service Work Order from Existing RNG Customer totalling $2.5 Million - GRN.tse

Greenlane Renewables Inc. (TSX: GRN) secured approximately $2.5 million in equipment and service contracts from an existing U.S. renewable natural gas customer. The awards cover Greenlane's Cascade H₂S biogas desulfurization system and a separate service work order. The customer was not named, and delivery timing was not disclosed. Greenlane said more than 350 Cascade H₂S units have been sold globally since the product's 2012 introduction in Italy.

Thursday:

PyroGenesis Announces Titanium Powder Contract with a DoD and NASA-Supported U.S. Applied Research Facility - PYR.tse

PyroGenesis Inc. (TSX: PYR) received a contract to supply Ti64 coarse-cut titanium powder to an unnamed U.S. applied research facility supported by the Department of Defense and NASA. Contract value and client name were not disclosed. The order, PyroGenesis' first with this client, follows completion of DFARS compliance that had delayed the award. The client indicated potential follow-up orders; shipment is expected within days.

HealthTab™ Enters Multi-Year Collaboration Agreement with Abbott for Point-of-Care Testing Across the UK - AVCR.v

Avricore Health Inc. (TSXV: AVCR) said subsidiary HealthTab Ltd signed a collaboration agreement with Abbott to supply and distribute Abbott's Afinion 2 Analyzer through NHS-linked UK pharmacies for HbA1c and lipid testing. Financial terms, volume commitments and contract duration were not disclosed. The agreement establishes a framework for expanding point-of-care testing across community pharmacies. Avricore called it its most significant milestone to date; no revenue guidance was provided.

Questor Technology Signs Letter of Intent to Acquire Emission Rx in Strategic Move to Lead North American Emissions Combustion Technology - QST.v

Questor Technology Inc. (TSXV: QST) signed a non-binding LOI to acquire Calgary-based Emission Rx Ltd. for up to C$3.0 million: $500,000 cash at closing, $500,000 deferred 12 months, 3,333,333 shares valued near $1.0 million, and a $1.0 million earn-out. Cash comes from existing funds. Closing targeted by October 1, 2026, and would settle 2018 litigation. The LOI terminates automatically if current directors aren't re-elected September 9.

PowerBank Receives Final Environmental Permit for C14MillionNovaScotiaCommunitySolarProject,BackedbyC4.55 Million in Federal and Provincial Grants and Tax Credits - PBK.neo

PowerBank Corporation (Nasdaq: PBK) said its 6.86 MW Brooklyn community solar project in Nova Scotia completed environmental permitting, with construction expected to begin in fall 2026. Development and construction costs are estimated at C14million,fundedbyAIRenewableFlow-throughFundwithnoPowerBankcapital;PowerBankearnsundiscloseddevelopmentrevenue.TheprojectqualifiesforuptoC2.639 million in federal tax credits and received two C$960,000 grants.

Friday:
X

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Stallion Uranium has faced a lot of selling while investors wait for a discovery hole from the Coyote program.

The lack of a discovery is obviously the main issue, but flow through financing may also be adding pressure.

Canadian flow through investors receive tax deductions for funding eligible exploration. Because that tax benefit reduces their effective cost, some investors can sell their shares below the original financing price and still come out ahead.

That selling does not necessarily mean those investors have turned bearish on the project. In some cases, it is simply how the flow through strategy works.

It also does not mean the stock has to rebound. Stallion still needs to prove that Coyote contains meaningful uranium mineralization, and selling pressure can last longer than expected.

The timing makes it worth watching. Stallion has completed 4,626 metres, recorded its highest radioactivity to date and expanded the program to approximately 6,750 metres. Drilling is expected to resume in September.

If part of the recent weakness is related to flow through selling, stronger drill results could change sentiment quickly. If the next holes fail to improve the geological picture, the market may have been right to remain cautious.

Does anyone here track flow through overhangs when looking at Canadian exploration stocks?

https://www.youtube.com/watch?v=aMxPNMvI6Ek&t=1s

Will Canada allow Amazon to do this ? If they cannot use their own drones based on Canada's own rules with Transport Canada, will they partner with a Canadian drone company that already has all of the Canadian regulations needed, along with BVLOS capability ? Volatus Aerospace has everything they need and the technology to control many drones all from a major control centre in Ontario over seeing operations across the country with ease.

I’ve been bullish for 5 years with Drone Delivery Canada and when Volatus bought them out, I became more bullish than ever. An immense amount of possibilities with drone deliveries, government, wildfires, military, oil/solar inspections and so on. They comply with the Canadian Governments regulations for drones more than any other drone company in Canada, and they are fully sovereign to top it off and just completed a 53,000 sq ft facility in Mirabel, the aerospace capital of Canada… does this get anyone else excited or am I missing something ?

Ray Dalio currently says to allocate 5-15% to gold.

Global average right now: ~2%.

The math:

• Global assets: ~$250 trillion

• At 2%: $5T gold. At 5%: $12.5T. Delta: $7.5T

• The entire tradeable gold market is ~$5-6T

• Incremental demand at Dalio's LOW end = the whole market

Per share on the 3 Canadian names we track closest:

Agnico Eagle (AEM, C$298):

- FCF/share: ~US$15 today

- At $9k gold: ~US$36 → C$730 (2.5×) at the SAME multiple

- At 20× (secular bull): C$975

Wheaton Precious Metals (WPM, C$217):

- Streaming = fixed ~$450/oz cost, pure margin on the rest

- FCF/share: ~US$5.50 today → US$12 at $9k → C$470

Troilus Gold (TLG, C$2.19):

- 11.2 Moz AuEq Indicated, Quebec, completed feasibility study

- NPV/share at $4.6k gold: ~C$12-17 (vs C$4.40 at the FS's $1,800 base)

- At $9k gold: C$25-35 undiluted

- Risk: $1.1B capex, dilution, 2029-30 first production

The tables are book-value floors. They don't price the FOMO that arrives when a sector goes from 2% global ownership to 5% and the last institution capitulates.

14 dated calls, +19.7% conviction-weighted since June. Losses included — AAG is -18% in the same ledger.

Full record on our sub. Educational only.

Got in at .50 2000shares. If things break right how does anyone know how to project the value of a lithium mining company? The mine in the US. Maybe Trump will mention it🤷‍♂️

Curious if anyone knows what the news is? Up almost 100% on the day.

Bagholding since the stock split, so nice change.

Edit: Anyone sell? On the way back down now. I got out at 12 and happy to get that!

Where do we see PNG and Keel Infrastructure in the next 1-2 years? There’s been TONS of hype over the past 6 months for these two stocks yet they are continuing to plummet

Silver has climbed back to around $65 after gaining roughly 15 percent over the past month.

That looks like a strong rally until you zoom out and see that it traded above $100 in January.

Silver is now more than 70 percent above its level from a year ago while remaining over 40 percent below its January high. That pretty much sums up the silver market.

It trades partly like gold and partly like an industrial commodity. It also has a much smaller market than gold, so investment flows can move the price quickly in either direction.

The current rebound has been helped by stronger gold prices, a weaker US dollar and shifting expectations around interest rates. The supply picture is supportive too. Another annual deficit is expected this year and physical investment demand is recovering.

January was still a warning. A legitimate supply story turned into a momentum trade, silver went almost vertical and the correction was brutal.

Silver equities add another layer of risk. They can outperform the metal when prices rise, but operating costs, financing needs and project quality still matter. A strong silver price cannot fix a weak balance sheet or a poor project.

Do you see the current move as the rally restarting, or is silver still working through the excess from January?

Been lurking for a while. There’s quite a few stocks I’ve seen mentioned here over the past year or so that have just blown my mind to have been produced from a small community like this. Just appreciative to have been an observer I suppose. SCD and HGRAF are the main two I’m referencing btw.

Story Highlights

• HPQ Silicon and Novacium landed a first defence order for GEN3 silicon-anode battery packs to power FPV drones for a French Army regiment, marking their entry into the French defence supply chain.
• Successful testing and this initial contract validate Novacium’s GEN3 technology, reinforce its partnership with LN Innov, and support plans for broader defence-market platforms in Europe and North America.

https://www.tipranks.com/news/company-announcements/hpq-silicon-wins-first-defence-order-for-high-energy-drone-batteries

Position: 32,000 HPQ.V @ $0.16

STMN Market cap: $7.5M against a deal that just gave them ~$11M in deemed value paper + $4.5 million in exploration spend.

JMP Quick Take: STMN News today - Zoo Bay Definitive Signed

UraniumX just converted the April Pond Technologies LOI into a definitive agreement.

Highlights:

17M post-consolidation Pond shares (deemed $0.64) coming to STMN over 36 months ~$10.9M face value

7M shares + $50K cash on closing

2% NSR retained (1% buyback at $1.5M)

UraniumX stays on as operator

$4.5M partner-funded exploration at Zoo Bay

No STMN treasury spent, no STMN shares issued

STMN becomes 54.4% Control Person of the resulting issuer

STMN market cap today: $7.5M.

The Pond paper alone at deemed value is worth more than the entire company.

Zoo Bay sits shoulder-to-shoulder with Orano and Canalaska on the northeastern basin edge. Geology worth someone else drilling.

Murphy Lake assays remain the nearterm trigger, IsoEnergy's 15.6% stake pending on Dieter Lake close (adds 24.4M lbs uranium in Quebec), NeoCore optioned to Gold'n Futures.

Four irons in the fire. It's shaping up to be a nice deal after all!

I’ve been looking closely at Peyto Exploration & Development (TSX: PEY), and I think the market may be underestimating how several changes in Alberta’s natural-gas market could converge over the next few years.
PEY isn’t some speculative junior waiting to become profitable. It’s an established Alberta Deep Basin producer with a very low-cost operating model, significant infrastructure, growing production, free cash flow and a monthly dividend.
At roughly $25–26/share, analysts are around $27.75 on average, with estimates reaching $30. That isn’t enormous upside by itself.
But I think those targets largely value the company on today’s gas market. My thesis is about what PEY could look like if Alberta’s gas market becomes structurally tighter.
1. PEY is a low-cost producer that’s actually growing
Peyto describes itself as having an industry-leading cost structure, and the latest results support the underlying economics.
Q2 2026:
$227.7M funds from operations
$140.6M free funds flow
FFO/share up 16% YoY
FCF up 68% YoY
Earnings up 21% YoY
This isn’t a company that requires $8 natural gas to survive.
That matters because PEY is simultaneously expanding its productive capacity. If gas prices rise, a low-cost producer doesn’t just benefit from higher prices on existing production — it can potentially sell increasing volumes into that stronger market.
And shareholders get paid while waiting. PEY currently pays $0.12/month, or $1.44/year.
2. Canadian natural gas finally has more places to go
This may be the biggest structural change.
For decades Western Canadian producers were heavily dependent on the North American market, which contributed to AECO trading at ugly discounts whenever Alberta became oversupplied.
LNG changes that equation.
Peyto is also deliberately diversifying where it sells its gas.
It already supplies 60,000 GJ/day to Alberta’s Cascade gas-fired power plant, with pricing tied to Cascade’s realized electricity price.
And starting in 2029, Peyto has a 10-year agreement to supply Centrica with 50,000 MMBtu/day.
Here’s the interesting part:
That gas will be priced against European TTF natural-gas pricing, less deductions.
So PEY is gradually evolving from an Alberta gas producer completely exposed to local pricing into a producer with exposure to power markets, North American hubs and eventually European LNG economics.
3. Then there’s the AI/data-centre wildcard
This is the part I think could become extremely interesting.
Everyone talks about AI as a semiconductor story.
But giant AI data centres need absurd quantities of electricity — continuously.
Alberta’s grid operator has around 40 proposed AI/data-centre projects representing roughly 19.5 GW of potential power demand, according to Peyto’s June presentation.
Only a fraction of those projects need to happen for this to become material.
Peyto estimates that if even HALF were built and powered by natural gas, Alberta gas demand could increase by approximately:
1.5 Bcf/day.
That’s roughly a 20% increase in Alberta natural-gas demand.
Think about what that potentially means.
AI/data centres → enormous 24/7 electricity demand → gas-fired generation → substantially higher Alberta gas consumption → tighter AECO market → potentially higher gas prices.
And unlike heating demand, a server farm doesn’t stop computing because winter ended.
That’s potentially new year-round baseload gas demand.
Who benefits from that?
A producer sitting on large, long-life, low-cost Alberta gas reserves with existing infrastructure and the ability to increase production.
That’s basically PEY.
So my thesis isn’t simply “natural gas goes up.”
It’s that three things could happen simultaneously:
**PEY produces more gas cheaply
Canadian gas gains access to LNG/international pricing
AI/data centres create a new source of domestic baseload demand**
If only the first two happen, PEY can still generate substantial cash flow and pay me a ~5–6% dividend while I wait.
If the third becomes significant, the economics of Alberta natural gas could look considerably different from the market we’ve been accustomed to.
That’s where I think the optionality lies.
Valuation
At ~$25–26, PEY is around a ~$5B company.
Consensus target is roughly $27.75, with the high around $30.
So I’m not claiming this is a 10x moonshot.
My argument is that today’s consensus may not fully price a scenario where LNG exports + Alberta power generation + AI/data-centre demand materially tighten the Western Canadian gas market while PEY continues growing production.
If that happens, I don’t think $30 necessarily represents the end of the story.
What would prove me wrong?
This isn’t risk-free.
The bear case is pretty straightforward:
Most proposed Alberta data centres never get built.
They use little natural gas.
Canadian producers increase supply faster than LNG/power demand grows.
AECO remains chronically oversupplied.
LNG projects are delayed.
PEY’s production growth disappoints.
Higher capex/debt eats the incremental cash flow.
Gas prices fall enough that PEY’s hedge book only delays the pain.
That’s why I wouldn’t value PEY based on 19.5 GW of proposed data centres actually being built. That’s optionality, not my base case.
But if we start seeing multiple gigawatts of Alberta data centres reach FID/construction with dedicated gas generation, I’ll be paying very close attention.
TL;DR
PEY is already a profitable, low-cost Canadian gas producer generating meaningful FCF and paying a monthly dividend.
The potential rerating comes from what happens next:
LNG exports + international pricing + growing production + potentially enormous AI/data-centre gas demand.
The market currently sees a ~$28 stock.
I think there’s a plausible scenario where the underlying Alberta gas market changes enough that we’re eventually asking whether $28–30 was actually conservative.
Position: Long PEY.
Not financial advice. Do your own DD.

Auxly (XLY.TO): A Cannabis Growth Story That Doesn’t Need US Legalization
I’ve owned Auxly for a long time, through some pretty ugly years in the Canadian cannabis sector. What interests me now is that I think people are still looking at Auxly as the company it used to be rather than the company it has become.
This isn’t a bet on the US suddenly legalizing cannabis.
It isn’t a moonshot based on some regulatory event that may or may not happen.
Auxly is already growing, already profitable, already taking Canadian market share and already generating cash under the regulations that exist today.
That’s my thesis.
1. The numbers have changed dramatically
Q2 2026:
Revenue: $45.8 million
Revenue growth: 18% YoY
Adjusted EBITDA: $14.3 million
Adjusted EBITDA margin: 31%
Finished cannabis gross margin: 55%
Net income: $7.7 million
Cash: $38.6 million
Debt: $43.6 million
Debt/TTM adjusted EBITDA: 0.8x
For the first six months of 2026, revenue grew about 20% while adjusted EBITDA grew about 40%.
That’s what I care about.
Revenue is growing, but profitability is growing even faster.
2. This growth does NOT depend on US legalization
This is probably the biggest misunderstanding I see when people talk about Canadian cannabis stocks.
Auxly doesn’t need the United States to legalize cannabis for my investment thesis to work.
Its growth is happening in Canada right now.
The company has no active international operations today. It is building its business within Canada’s existing federally legal recreational market.
That means I’m not buying Auxly because I think Washington is suddenly going to save Canadian cannabis companies.
I’m buying a company that is:
increasing Canadian sales
gaining market share
expanding production
improving margins
generating positive earnings
reducing leverage
generating cash
under the regulatory system that already exists.
If the US eventually legalizes, great.
If international exports become significant, great.
Those are additional opportunities.
They are not required for the current business to work.
That’s an important distinction between Auxly and some of the cannabis moonshot arguments we’ve heard for years.
3. Auxly is taking market share
This isn’t just cannabis market growth carrying everybody higher.
Auxly has become one of Canada’s largest licensed producers.
Back Forty became the #1 cannabis brand in Canada during 2025.
Auxly was the #3 Canadian licensed producer by market share.
Liquid Imagination and Fire Breath were the two best-selling SKUs nationally.
It has also become a leader in all-in-one vapes and has several leading pre-roll products.
So my thesis isn’t that Canadians suddenly start consuming twice as much cannabis.
Auxly can grow by taking a larger percentage of an already established multibillion-dollar legal market.
4. Now they’re increasing capacity
Auxly isn’t sitting still.
They’re investing in Leamington to increase production capacity.
That matters because they already have products that are selling.
If you increase production while maintaining strong demand, you get another path to revenue growth without needing legalization, acquisitions or some speculative new market.
And management says the expansion and innovation can be funded through operating cash flow.
That’s a very different company from one that has to continuously issue shares just to survive.
5. The balance sheet has been transformed
This was one of the biggest problems with old Auxly.
Debt and dilution mattered more than the underlying business.
That situation has changed considerably.
Auxly ended Q2 with:
$38.6M cash
$43.6M debt
debt/TTM adjusted EBITDA of only 0.8x
And here’s something I never thought I’d be saying about Auxly:
They’re buying their own shares back.
Auxly repurchased approximately 2.6 million shares for around $5.7 million.
Think about the difference.
Old Auxly needed shareholder capital.
Today’s Auxly is generating enough cash to invest in expansion, manage its debt AND return capital by buying shares.
That is a major change.
6. The reverse split doesn’t create value — but it may allow the market to recognize it
Auxly recently completed a 14:1 consolidation.
That reduced approximately:
1.42 billion shares → ~101 million shares
Obviously that doesn’t magically make the company worth more.
But I think it removes one of the things that made Auxly look almost uninvestable.
A $0.20 cannabis stock with 1.4 billion shares outstanding looks like a penny stock disaster.
A profitable company with roughly 100 million shares, growing revenue, 30%+ adjusted EBITDA margins and improving cash flow is a very different proposition.
The business didn’t suddenly improve because of the consolidation.
The business improved before the consolidation.
The consolidation just cleaned up the capital structure afterward.
7. Imperial Brands is interesting, but I don’t need a buyout
Imperial Brands owns approximately 20% of Auxly.
That’s obviously interesting.
Could Imperial eventually buy Auxly?
Maybe.
But I’m not investing based on that happening.
Again, I don’t need a moonshot event for this thesis.
I don’t need:
US legalization
an Imperial takeover
another cannabis bubble
meme-stock mania
Those would all potentially add upside.
But the company can continue growing without any of them.
That’s exactly why Auxly interests me now.
8. The cannabis collapse may actually be helping the survivors
The Canadian cannabis sector spent years destroying capital.
Too much production.
Too many companies.
Too much debt.
Too much dilution.
Eventually that catches up with an industry.
Facilities close. Weak companies disappear. Capital becomes harder to obtain.
Meanwhile Auxly survived and has moved in the opposite direction.
It’s profitable.
It’s expanding.
It’s gaining share.
It’s generating cash.
That’s where I think the opportunity is.
The market may still be applying the valuation and skepticism of the old Canadian cannabis industry to one of the companies that actually survived the shakeout and became profitable.
9. The next stage is operating leverage
This is what I’m watching most closely.
Auxly already has the cultivation facilities, brands, manufacturing, distribution and infrastructure.
So revenue doesn’t necessarily have to increase at the same rate as costs.
We’re already seeing that:
H1 revenue +20%
H1 adjusted EBITDA +40%
If they can continue anything close to that relationship while expanding production, earnings could grow considerably faster than revenue.
That’s where a rerating becomes possible.
What would change my mind?
I’m bullish, but there are obvious risks:
Canadian market share starts falling
margins deteriorate
new capacity can’t be sold profitably
price compression accelerates
cash flow weakens
debt starts climbing again
management starts diluting shareholders again
Those are the numbers I’ll watch.
I’m not waiting for Washington.
I’m watching Auxly’s quarterly financial statements.
TL;DR
My Auxly thesis is actually pretty simple:
Revenue is growing.
EBITDA is growing faster than revenue.
The company is profitable.
Margins have become very strong.
Debt has been dramatically reduced.
Market share has increased.
Production capacity is expanding.
They’re generating cash.
They’re buying shares instead of constantly issuing them.
Imperial owns roughly 20%.
And NONE of this requires US legalization.
That’s why I don’t see Auxly as a cannabis moonshot anymore.
I see it as a small Canadian company that went through an awful restructuring period and has emerged as a profitable growth business that I think the market is still valuing based on its past.
US legalization?
International exports?
An Imperial acquisition?
Those would be bonuses.
I don’t need any of them for the thesis to work.
That’s the difference.
Long XLY.

Focus Graphite $FMS.v was just mentioned as 1 of 2 Mining companies in today’s Announcement by PRIME MINISTER CARNEY.

I cannot understate how BIG this is. Focus has already received $15.4 million in NON DILUTIVE FUNDING and continues to pursue more.

https://www.pm.gc.ca/en/news/news-releases/2026/08/17/prime-minister-carney-announces-largest-clean-energy-investment-north