AUXLY ANNOUNCES EXPANSION INTO QUEBEC AND LAUNCHES NEW TRANSFORMATIVE PRE-ROLL AND VAPE INNOVATION

Rhea-AI Summary

Auxly Cannabis Group Inc. expands into Quebec, launching new pre-roll and vape products, including Back Forty slim style pre-rolls and innovative vape hardware. The company introduces Liquid Imagination cultivar and new flavour profiles like White Freeze and Kolab Project. Auxly aims to capture the Quebec market, strengthen national presence, and cater to evolving consumer needs.

Positive

• Auxly Cannabis Group Inc. expands into Quebec, tapping into a significant portion of the Canadian recreational cannabis market.

• The company's Back Forty slim pre-rolls in Ontario are the #1 selling pre-roll brand, showcasing strong consumer demand.

• Auxly's new array of innovative pre-roll and vape products, including Liquid Imagination cultivar and new vape flavour profiles, cater to evolving consumer preferences.

• Introduction of advanced, fully automated 0.75g three pack pre-rolls ensures consistent burn and full flower taste, enhancing user experience.

• The company's all-in-one vape hardware, including the Back Forty brand and Kolab Project, offers convenient formats with unique flavour profiles, securing top positions in sales rankings.

• Auxly's dedication to providing quality cannabis products and cutting-edge solutions to address consumer needs strengthens its national market presence.

Negative

• Potential challenges in capturing the Quebec market and facing competition in the province's recreational cannabis sector.

• Risks associated with ensuring the success of new product launches in select retail stores and maintaining market share against competitors.

• Possible impact on financial performance due to investment in expanding product lines and market presence across provinces and territories.

TORONTO, May 6, 2024 /PRNewswire/ - Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) ("Auxly" or the "Company") a leading consumer packaged goods company in the cannabis products market, is pleased to announce that a curated selection of its branded products are now available online and in select retail stores in the province of Quebec.  The Company is also thrilled to introduce its latest array of innovative pre-roll and vape products, designed to redefine standards and enhance user experiences.   

The Company has officially launched its first branded product in Quebec, where consumers are able to experience the simple, uncomplicated products of Back Forty.  The initial products available now are the Company's new, slim style, large format 0.75g three-pack pre-rolls.

Building off the incredible success of Back Forty slim pre-rolls, which is currently the #1 selling pre-roll brand in Ontario,¹ the Company is thrilled to introduce its advanced, fully automated for precision, 0.75g three pack pre-rolls, that deliver a full flower taste and offer a consistent burn from start to finish.  This three pack uses Auxly's latest top performing cultivar, Liquid Imagination, a potent cross between Blue Zkittles and Jet Fuel Gelato and developed at Auxly Leamington's advanced greenhouse.  Consumers will be delighted by its high-potency blend that is chock-full of trichomes.         

In addition, Auxly is continuing to build its presence in the competitive vapour category where it currently holds the #2 LP position in national sales.²  Late last year, the Company introduced its new all-in-one vape hardware through its Back Forty brand, this convenient format was designed to be held in the palm of your hand and offer big flavour in a small size.  It quickly became a consumer favourite, securing the top 4 selling SKU positions in Ontario for the last three months³ while propelling the Company and the Back Forty brand to the #1 position in national disposable vape sales.²  The Company is thrilled to announce further expansion in its hand held all-in-one vapes, with new flavour profiles like White Freeze, a nostalgic experience for the senses with notes of cream soda, vanilla and lemonade, being introduced through the Back Forty brand, as well as the launch of a new offering under its premium brand Kolab Project.  This new Kolab all-in-one rechargeable vape uses innovative dual-heat settings that allow consumers to customize their experience to their personal preference, guaranteeing a carefully crafted experience, and will offer one of the Company's most potent extracts at 92-98% THC.     

"We are thrilled to announce our entry into the Quebec market," said Mike Lickver, President of Auxly.  "Quebec makes up approximately 12% of the total Canadian recreational cannabis market, so this expansion represents a significant milestone for us and the beginning of a long-term relationship with the province. This entry also solidifies our national market presence by ensuring our products can get into the hands of Canadian consumers coast to coast, as we now have a presence in all provinces and two territories.  As we continue our mission to help consumers live happier lives by providing them with quality cannabis products, we are dedicated to delivering cutting-edge solutions that address their evolving needs."        

Auxly's new product launches will be available in select retail stores across the country this spring and summer. 

ON BEHALF OF THE BOARD

"Hugo Alves" CEO

About Auxly Cannabis Group Inc. (TSX: XLY)

Auxly is a leading Canadian consumer packaged goods company in the cannabis products market, headquartered in Toronto, Canada. Our mission is to help consumers live happier lives through quality cannabis products that they trust and love.

Our vision is to be a global leader quality cannabis products.

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

___________________________

1 Hifyre IQ, non-infused pre-roll, as of May 2024

2 Hifyre, as of May 2024

3 OCS data, April 2024

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 Company's execution of its branded product development and commercialization strategy; the successful production and launch of future products; the relevance of the Company's current and proposed products; consumer preferences; political change, future legislative and regulatory developments involving cannabis and cannabis products; and competition and other risks affecting the Company 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 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, the Company 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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/auxly-announces-expansion-into-quebec-and-launches-new-transformative-pre-roll-and-vape-innovation-302136228.html

SOURCE Auxly Cannabis Group Inc.

FAQ

<p>What products has Auxly Cannabis Group Inc. launched in Quebec?</p>

Auxly has introduced its Back Forty slim style pre-rolls and advanced 0.75g three pack pre-rolls in Quebec, along with innovative vape products.

<p>What are the key features of Auxly's new pre-roll and vape products?</p>

Auxly's new pre-rolls offer a consistent burn and full flower taste, while the vape hardware provides unique flavour profiles like White Freeze and Kolab Project.

<p>How does Auxly plan to expand its market presence?</p>

Auxly aims to strengthen its national market presence by introducing new products in select retail stores across the country and catering to evolving consumer needs.