TSX Shariah screener · October 2026

Is Auxly Cannabis Group Inc. (XLY) Halal?

FAIL

Auxly Cannabis Group Inc. · TSX: XLY · Healthcare

The short answer

No — Auxly Cannabis Group (XLY) fails this Shariah stock screen at the first gate. It is a cannabis producer: its revenue statement shows 'Revenue from sales of cannabis products' of C$70.8 million in Q2 2026 (net revenue C$45.8 million after excise taxes) — 100% of revenue is cannabis. Separately: total debt was C$43.6 million at June 30, 2026 (about 12% of its ~C$363.65M market cap), cash was C$38.6 million, and 'interest and other income' was C$270K in Q2 2026 (interest not separately disclosed). No Zoya, Musaffa, or ShariaPortfolio coverage of this ticker was found — reported as absent, not invented.

Gate 1 — Business activity: FAIL

Auxly Cannabis Group Inc. (TSX:XLY, OTCQB:CBWTF) describes itself in its own filings as 'a leading consumer packaged goods company in the cannabis products market,' headquartered in Toronto. Its brands include Back Forty, Foray, Kolab Project, Dosecann, and Parcel. The Q2 2026 revenue statement breaks revenue down as 'Revenue from sales of cannabis products' (C$70.8 million gross; C$45.8 million net of excise taxes) — effectively 100% of revenue is cannabis. Cannabis is a prohibited business line under this screen, so Gate 1 fails. Separately, the Q1 2026 MD&A discloses that Auxly acted as DIP lender to Ayurcann Inc. (up to C$2M at 12% per annum, advanced C$1.5M; stalking-horse bid not selected in April 2026, facility to be repaid) — an interest-bearing activity, but incidental to the cannabis FAIL. Facts only.

Gate 2 — Debt and cash: PASS

Total Debt (company-defined supplementary measure: current plus long-term debt) was C$43.578 million at June 30, 2026 (Q2 2026 release), down from C$46.279M at Dec 31, 2025. Against a market cap of roughly C$363.65M (103.2M shares at ~C$3.52), debt ÷ market cap is about 12% — well under the ~33% ceiling. Cash and cash equivalents of C$38.6M are about 11% of market cap. Gate 2 passes informationally (Gate 1 already fails). Facts only.

Gate 3 — Non-compliant income: PASS

The Q2 2026 statements disclose a combined 'Interest and other income' line of C$270K (H1 2026: C$328K) — interest income is not separately disclosed, so the exact pure-interest ratio is unverifiable and is reported as null, not estimated. Against Q2 2026 net revenue of C$45.804M, the combined line is ~0.6%, meaning pure interest income is necessarily below the 5% ceiling even in the worst case. Gate 3 passes informationally (Gate 1 already fails). Facts only.

Key figures used

Revenue: 100% cannabis — 'Revenue from sales of cannabis products' C$70.8M gross / C$45.8M net in Q2 2026 (company release)
Total Debt (company-defined): C$43.578M at Jun 30, 2026; debt ÷ market cap ≈ 12% (mktcap ~C$363.65M)
Cash: C$38.6M at Jun 30, 2026 ≈ 11% of market cap; total assets C$276.2M
Interest and other income: C$270K (Q2 2026) / C$328K (H1 2026) — combined line; interest not separately disclosed (unverifiable, reported as null)
Also listed OTCQB:CBWTF; 14:1 share consolidation effective July 28, 2026; brands Back Forty, Foray, Kolab Project, Dosecann, Parcel

Frequently asked questions

Is Auxly Cannabis Group (XLY) halal?

No. Auxly Cannabis Group fails this Shariah stock screen at the business-activity gate. It is a cannabis producer — its Q2 2026 revenue statement shows 'Revenue from sales of cannabis products' of C$70.8 million (C$45.8 million net of excise taxes), i.e. effectively 100% of revenue is cannabis, across brands including Back Forty, Foray, Kolab Project, Dosecann, and Parcel. Cannabis is a prohibited line under this screen, so no other gate can change the result. Separately, its debt (C$43.6M, ~12% of market cap) and income figures are reported for reference. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.

What is Auxly Cannabis Group's debt-to-market-cap ratio?

About 12%. Total Debt (company-defined as current plus long-term debt) was C$43.578 million at June 30, 2026, against a market cap of roughly C$363.65M (103.2M shares at ~C$3.52) — under the ~33% ceiling. Cash of C$38.6M is about 11% of market cap.

What does Auxly Cannabis Group do?

Auxly Cannabis Group Inc. (TSX:XLY) describes itself in its own filings as 'a leading consumer packaged goods company in the cannabis products market,' headquartered in Toronto, Canada. Its primary product development and manufacturing is done through subsidiaries in Charlottetown, Ottawa, and Leamington.

How much interest income does Auxly Cannabis Group earn?

The exact figure is unverifiable: Auxly discloses only a combined 'Interest and other income' line — C$270K in Q2 2026 (C$328K in H1 2026) — so pure interest income is not separately disclosed and is reported as null rather than estimated. Against Q2 2026 net revenue of C$45.8M, the combined line is ~0.6%, so pure interest income is necessarily below the 5% ceiling. In early 2026 Auxly also acted as DIP lender to Ayurcann Inc. (up to C$2M at 12% per annum, C$1.5M advanced; bid not selected, facility to be repaid).

Where can I find more healthcare stock screeners?

See halal-stock-verdicts.html for the full list of stock screeners, including the other healthcare-sector entries.

Sources

Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).