Auxly Announces Strategic Expansion into Cannabis 1.0
Auxly Cannabis Group Inc. (OTCQX: CBWTF) announced today its strategic expansion into Canada’s dried-flower market, aiming to enhance its product offerings. This expansion involves:
- Launching new cultivars under Kolab Project Growers Series.
- Introducing strain-specific dried-flower products at competitive prices via the Back Forty brand.
- Increasing pre-roll capacity with custom automation.
Following a successful 2020, Auxly aims to leverage its strong market position and partnerships to boost its presence in Cannabis 1.0 products while maintaining a commitment to quality.
- Achieved #1 market share position in Canada for Cannabis 2.0 products.
- Introduced new high-THC strain, Back Forty Pine Kush, expected to resonate with consumers.
- Expansion of partnerships with top-tier cultivators enhances product offerings.
- None.
TORONTO, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Today Auxly Cannabis Group Inc. (“Auxly” or the “Company”) (TSXV: XLY) (OTCQX: CBWTF), a leading consumer packaged goods company in the cannabis products market, reveals its strategic expansion into Canada’s largest cannabis segment, the dried-flower market. Auxly’s expansion into Cannabis 1.0 consists of a three-pronged strategy:
1. Expanding its flower offering under the Kolab Project Growers Series through the launch of new cultivars with existing partners and securing new partnerships with top-tier cultivators;
2. Launching a strain-specific dried-flower offering of unique genetics at a compelling price point under Auxly’s Back Forty brand; and
3. Significantly boosting its pre-roll capacity through custom-built automation and launching disruptive pre-roll products under its Kolab Project and Back Forty brands.
Today’s announcement comes on the heels of a breakout 2020 for Auxly. Among other corporate highlights, the Company secured the #1 market share position in Canada for Cannabis 2.0 products and launched its first entries into the flower market with Robinsons premium craft dried flower and its industry-first Kolab Project Growers Series, which included new consumer-favourite strains, Kalifornia and Ice Cream Cake.
“We’re proud to have achieved our objective of leading Cannabis 2.0, which remains key to our business strategy,” said Hugo Alves, CEO, Auxly. “Our 2.0 product offerings under our Kolab Project and Back Forty brands have been a huge hit with consumers, who routinely point to the quality and consistency of our products as the reasons why they choose our brands over others. We believe that there is a fantastic opportunity to stretch our branded product offering into 1.0 product formats and bring that same quality and consistency that consumers love to our dried-flower and pre-roll products.”
Auxly’s expanded 1.0 offering includes the introduction of new strains for the Kolab Project Growers Series, which shines a spotlight on craft cannabis growers in an effort to provide transparency for consumers into the source of their premium cannabis and to give credit where it’s due. Auxly’s partners for the Growers Series are top-tier cultivators who benefit from Auxly’s capacity to bring new and in-demand strains quickly to consumers across Canada, leveraging the Kolab Project brand, which is synonymous with high quality for cannabis enthusiasts. In coming weeks, Auxly will expand its partnership with Safari Cannabis Co. for new strains, including the upcoming launch of Slurricane, and the Company expects to welcome other new craft cultivation partnerships to the Growers Series soon.
Auxly is also introducing Back Forty Pine Kush – Back Forty’s inaugural dried-flower offering. Back Forty’s current product offering of high potency vapes has resonated with savvy consumers looking for high quality at affordable prices. Back Forty Pine Kush adheres to that brand promise, delivering high THC potency for this new strain to the Canadian market, which will be available nationally in both 3.5g and 28g units in coming weeks. Auxly anticipates that future Back Forty offerings will also include exciting new strains from the Company’s joint-venture cultivation partner Sunens Farms.
The third leg of Auxly’s expanded dried-flower strategy consists of game-changing pre-roll product innovation alongside improvements to the Company’s pre-roll manufacturing capacity. More information about updates to Auxly’s pre-roll processing will be unveiled in the coming months.
Auxly’s success to-date is the culmination of its commitment to quality, safety and efficacy, which is what Canadian consumers have come to know and expect from Auxly products. As the Company continues to bolster its expansion efforts into Cannabis 1.0, maintaining this commitment remains its top priority.
ON BEHALF OF THE BOARD
"Hugo Alves” CEO
About Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF)
Auxly is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, wellness and adult-use markets. Auxly's experienced team of industry first-movers and enterprising visionaries has secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities and leading product 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/.
Investor Relations:
For investor enquiries please contact our Investor Relations Team:
Email: IR@auxly.com
Phone: 1.833.695.2414
Media Enquiries (only):
For media enquiries or to set up an interview please contact:
Email: 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 Kolab Project and Back Forty products; the Company’s execution of its product development, commercialization strategy, and expansion plans; plans for expansion of the Company’s processing and production capacity; the Company’s ability to secure new partnerships; 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; the Company’s subsidiaries and partners are able to maintain their current licences and are able to obtain and maintain all other necessary governmental and regulatory authorizations and permits to operate their facilities and conduct business; and general economic, financial market, regulatory and political conditions in which the Company operates will remain the same. Additional risk factors are disclosed in the annual information form of the Company for the financial year ended December 31, 2019 dated May 13, 2020.
New factors emerge from time to time, and it is not possible for management to predict all of those factors or to assess in advance the impact of each such factor on Auxly’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. 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 industry sources, the accuracy of which has not been verified by Auxly. The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. Readers should not place undue reliance on forward-looking information contained in this release.
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 TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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