Auxly Achieves Key 2021 Target and Launches Exciting Fall Innovation Portfolio

Rhea-AI Summary

Auxly Cannabis Group has achieved a significant market milestone by becoming the #5 Canadian Licensed Producer (LP) with a 7.3% national market share. This success is credited to their innovative portfolio and leadership in the cannabis 2.0 segment, where they hold the #1 position in vapes. The company has launched a new fall product lineup, featuring seasonal flavors and formulations across its brands, including Back Forty, Kolab Project, and Foray. These offerings aim to enhance consumer experience and drive further growth in the competitive cannabis market.

Positive

• Achieved #5 position among Canadian LPs with 7.3% market share.
• Leads cannabis 2.0 segment, holding #1 in vapes with 25.6% market share.
• Successful fall product launch with new strains, flavors, and formulations.

Negative

• None.

Headset Canadian Insights Sales Data confirms Auxly as the #5 LP in terms of national market share with 7.3% of total sales

Supporting further growth, the Company launches fall innovations including new products, seasonal flavors and new strains and formulations

TORONTO, Nov. 10, 2021 (GLOBE NEWSWIRE) -- Auxly Cannabis Group Inc. (TSX - XLY) (“Auxly” or the “Company”), a leading consumer packaged goods company in the cannabis products market, today introduces a fall lineup packed with innovative new products, flavours and formulations designed to delight Canadian cannabis consumers. This new lineup is launching as the Company announces that it has achieved one of its key 2021 objectives by achieving the #5 position among Canadian Licensed Producers.

Auxly continues to expand its market share in the Canadian cannabis sector through the Company’s strategic growth of its innovative portfolio of branded products. A strong performance for the month of October has helped Auxly achieve one of its key objectives for the 2021 Fiscal Year – to become a Top 5 Canadian Licensed Producer by national market share. October data has vaulted Auxly into the #5 position among Canadian LPs, with a 7.3% share of the national market, as confirmed by Headset Canadian Insightsⁱ. Auxly has continued to gain market share through continued leadership in the cannabis 2.0 segment - where it maintains #1 position in vapesⁱⁱ and the #1 position in the cannabis 2.0 segment overallⁱⁱⁱ – and its successful expansion into the 1.0 segment where strong consumer demand for the Company’s Back Forty and Kolab Project branded products has vaulted the Company into the Top 10 producers for both the dried-flower and pre-roll^iv categories^v.

Looking forward, Auxly today unveils a suite of new product offerings designed to excite and delight Back Forty, Kolab Project and Foray consumers. The product launches this fall include: new seasonal confections that evoke the cozy warmth of the holidays; brand-new innovations; extensions of existing product lines that take Auxly brands in new directions; new dried-flower strains; and new flavours & formulations for Auxly’s industry-leading vape portfolio.

“Every member of our team is delighted by the strong response from consumers to our products,” said Andrew MacMillan, Senior Vice President, Commercial, Auxly. “Our iterative process for innovation is rooted in consumer insights, and driven by the tireless execution of product development, sales and marketing. Seasonal trends are very much a part of our formula and this latest round of product innovations convey the coziness and warmth of fall. We’re thrilled with our continued growth and can’t wait to bring more exciting new products to Canadian cannabis consumers.”

Here’s a look at the new products joining Auxly’s core portfolio and launching this fall under the Company’s in-house brands Kolab Project, Back Forty and Foray.

Dried Flower:

• Back Forty Big League Milled Sour Kush (7g). For consumers who like the convenience of pre-milled flower, Back Forty introduces a high-quality cross of OG Kush and Sour Diesel, with potencies reaching 21%. Top terpenes are Alpha-Humulene, Beta-Caryophyllene and Myrcene. Available now in Ontario.
• Back Forty Fruity Pebbles OG (3.5g and 28g). This new Back Forty strain is an indica cross between Green Ribbon and Tahoe Alien, with potencies reaching up to 23% THC. Top terpenes are Terpinolene, Myrcene and Bisabolol. Launching this month in Ontario, Alberta and British Columbia.
• Back Forty Wedding Pie (3.5g). The best-selling ounce at the Ontario Cannabis Store is now launching in a 3.5g format. Wedding Pie is the marriage of Wedding Cake and Grape Pie, reaching potencies of up to 26%. Top terpenes are Limonene, Beta-Caryophyllene and Myrcene. Available now in British Columbia, Alberta, Saskatchewan and New Brunswick. Launching this month in Ontario and Prince Edward Island.
• Back Forty Animal Mints (3.5g). Another popular Back Forty cultivar, Animal Mints, is also launching in a 3.5g format. Animal Mints is a cross between Animal Cookies and SinMint Cookies, reaching potencies of up to 25%. Top terpenes are Beta-Caryophyllene, Farnesene and Limonene. Available now in Ontario, British Columbia, Alberta, Saskatchewan and New Brunswick. Launching this month in Prince Edward Island.
• Kolab Project x Safari Flower Co. Growers Series Slurricane (3.5g). The latest installment of the premium Kolab Project Growers Series is a partnership with Safari Flower Co. on the heavy-hitting Slurricane strain, grown in small-batches to maximize the strain’s natural expression. This cross of Dosidos and Purple Punch reaches potencies of up to a mighty 31% total THC. Top terpenes are Beta-Caryophyllene, Limonene and Alpha-Humulene. Available now in Ontario.
  

Concentrates:

• Kolab Project 232 Series Live Terpene Sticks (3 x 0.5g). Canadian consumers haven’t seen anything like Kolab Project Live Terpene Sticks. Called “infused pre-rolls” in States like California where they’re growing in popularity, Live Terpene Sticks are developed using a proprietary process that enables the combination of hydrocarbon-extracted live terp sauce with the best parts of premium cannabis flower; this creates a slow-burning combustible stick, bursting with flavour and potency. The live terpene sticks have potencies reaching up to 34% total THC and up to 4% total terpenes. Available now in Ontario. Launching this month in Alberta and British Columbia.
• Kolab Project 232 Series Caviar (1g). Caviar is a live-extract made from fresh-frozen Sundae Driver flower that has been put through a hydrocarbon-extraction process. This product is similar to Kolab Project 232 Series Diamonds, but with Caviar the Diamonds are generously coated with flavourful terp sauce. Caviar is highly potent, reaching up to 84% THC and up to 7% total terpenes, and packaged into recyclable and resealable 1g jars to retain freshness. Top terpenes are Terpinolene, Myrcene and Ocimene. Available later this month in Ontario and Alberta.
• Kolab Project 232 Series Live Rosin Jam (1g). Live Rosin Jam is the result of fresh-frozen Wedding Pie flower that is put through a solventless extraction process, producing a sticky, amber-coloured concentrate speckled with THCA crystals. Wedding Pie is a cross of Grape Pie and Wedding Cake. Top terpenes are Limonene, Beta-Caryophyllene and Myrcene. The total THC potency reaches as high as 73% and up to 7% total terpenes. Available later this month in Alberta and British Columbia.
• Kolab Project concentrates pair well with the competitively priced Kolab Project 232 Series Concentrate Pen, also new this fall. Concentrates are intimidating for many consumers, partly because of the complicated and often expensive equipment required. Kolab Project is removing this barrier to entry for the category with this high-quality device that combines the control found in a dab rig with the portability, discreetness, and convenience of a vape pen. Available in December in Ontario.

Vapes:

• Back Forty Sour Apple (1g cartridges). Canada’s top-selling vape brand introduces a new 1g size of this popular vape cartridge that bursts with tart apple and sweet fruity flavour. Top terpenes are Limonene, Linalool and Pinene. Available now in Ontario. Launching later this month in Alberta and British Columbia.
• Foray Mango Haze (1g cartridges and 0.3g disposables). Mango Haze, already a hit in the 0.5g cart format, is a 1:1 balanced formulation with a fruity, tropical flavour and distinctive burst of orange citrus. Top terpenes are Limonene, Myrcene and Beta-Caryophyllene. Available now in Ontario. Launching later this month in Alberta.
• Kolab Project 232 Series Black Cherry Punch Live Terpene (1g cartridges). The latest iteration in the Kolab Project 232 Series Live Terpene cartridge lineup uses the flavourful Black Cherry Punch. Top terpenes are Beta-Caryophyllene, Limonene and Linalool. Available in Ontario. Launching later this month in Alberta.
  

Edibles:

• Back Forty takes on an iconic holiday flavour with Back Forty Eggnog White Chocolate, with pure, high-quality distillate (10mg THC) in a single piece of delicious creamy white chocolate with notes of warm holiday spices. Available this month in Ontario, Alberta and British Columbia.
• Nothing says home for the holidays quite like apple pie, and with Foray Caramel Apple Pie White Chocolate, Foray takes its signature premium milk chocolate and adds a pinch of sweetness with all-natural caramel and apple flavours. Foray Caramel Apple Pie White Chocolate is a single square with 5 mg of THC and 25 mg of CBD. Available now in Ontario. Launching this month in Alberta and British Columbia.
• Foray Cinnamon Bun White Chocolate spices up Foray’s signature premium milk chocolate with all-natural cinnamon flavour, and adds a balanced cannabinoid profile of 10mg THC and 10mg of CBD. Available this month in Alberta and British Columbia.
• Foray CBD Blood Orange Soft Chews. Each one of these vegan soft chews is made with pure CBD isolate and no artificial colours or flavours, with 20mg of CBD and zero THC. Notably sold in packages of 30 for consumers looking to incorporate CBD into a daily ritual. Available this month in Alberta and British Columbia.

About Auxly Cannabis Group Inc. (TSX: XLY) (OTCQX: CBWTF)

Auxly is a leading Canadian cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the wellness and adult-use markets. Auxly's experienced team of industry first-movers and enterprising visionaries have secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities and leading research and development infrastructure in order to create trusted products and brands in an expanding global market.

Learn more at www.auxly.com and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.

For more information please contact:
Scott Campbell, 647-402-4957, press@auxly.com

Notice Regarding Forward Looking Information:

This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or information that certain events or conditions "may" or "will" occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes but is not limited to: the successful production and launch of current and future Company products; the Company’s execution of its product development, commercialization strategy, and expansion plans; the ability of the Company to maintain and grow its market share; the relevance of the Company’s proposed products; consumer preferences; political change, future legislative and regulatory developments involving cannabis and cannabis products; and competition and other risks affecting Auxly in particular and the cannabis industry generally.

A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this release including, but not limited to whether: there is acceptance and demand for current and future Company products by consumers and provincial purchasers; and general economic, financial market, regulatory and political conditions in which Auxly operates will remain the same. The forward-looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward-looking information speaks only to such assumptions as of the date of this release. In addition, this release may contain forward-looking information attributed to third party sources, the accuracy of which has not been verified by Auxly. The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, Auxly does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Neither Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

ⁱ Headset Canadian Insights, Total Canadian Cannabis sales for October, 2021.
ⁱⁱ For the month of October, Auxly is #1 in vape sales, with 25.6% of the national vape market. Source: Headset Canadian Insights.
ⁱⁱⁱ Cannabis 2.0 is generally understood to consist of vapes, edibles, beverages, extracts and topicals. Source: Headset Canadian Insights, October, 2021.
^iv For the month of October, Auxly is #7 in dried-flower sales with 4.6% of the national market, and #8 in pre-rolls, with 3.3% of the national market. Source: Headset Canadian Insights, October, 2021.
^v Cannabis 2.0 is generally understood to consist of vapes, edibles, beverages, extracts and topicals. Source: Headset Canadian Insights, October, 2021.

FAQ

What is Auxly's market share in the Canadian cannabis industry?

Auxly has achieved a 7.3% market share, becoming the #5 Canadian Licensed Producer.

When did Auxly launch its new fall product lineup?

Auxly launched its new fall product lineup on November 10, 2021.

What is Auxly's position in the cannabis 2.0 market?

Auxly is the market leader in the cannabis 2.0 segment, holding the #1 position in vapes.

What brands are included in Auxly's fall product innovations?

The fall innovations include products under the brands Back Forty, Kolab Project, and Foray.