Auxly Announces Closing of $20 Million Bought-Deal Public Offering, Including Full Exercise of the Over-Allotment Option

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TORONTO, Feb. 08, 2021 (GLOBE NEWSWIRE) -- Auxly Cannabis Group Inc. (“Auxly” or the “Company”) (TSXV: XLY) (OTCQX: CBWTF) is pleased to announce the closing of its bought deal short form prospectus offering pursuant to which the Company issued 54,395,000 units of the Company (the "Units") at a price of $0.37 per Unit for gross proceeds to the Company of $20,126,150 (the "Offering"), including the full exercise of the over-allotment option.

The Offering was co-led by ATB Capital Markets Inc. and Cantor Fitzgerald Canada Corporation as co-lead underwriters and joint bookrunners.

Each Unit is comprised of one common share of the Company (each a "Common Share") and one-half of one Common Share purchase warrant of the Company (each whole warrant, a "Warrant"). Each Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price of $0.46 at any time up to 36 months from closing of the Offering.

The net proceeds from the Offering will be used for working capital and other purposes as described in the prospectus of the Company dated February 1, 2021 prepared in connection with the Offering.

No securities regulatory authority has either approved or disapproved of the contents of this news release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.