Auxly Announces At-The-Market Equity Program

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TORONTO, March 23, 2021 (GLOBE NEWSWIRE) -- Auxly Cannabis Group Inc. (TSX.V - XLY) (OTCQX: CBWTF) ("Auxly" or the "Company"), a leading consumer packaged goods company in the cannabis products market, today announced that it has established an at-the-market equity program (the “ATM Program”) that allows the Company to issue and sell up to C$30,000,000 of common shares in the capital of the Company (the “Common Shares”) from treasury to the public, from time to time, at the Company’s discretion. Any Common Shares sold through the ATM Program will be sold through the TSX Venture Exchange (“TSXV”) or any other marketplace on which the Common Shares are listed, quoted, or otherwise traded, at the prevailing market price at the time of sale.

The ATM Program provides expanded flexibility to the Company should future additional financing be needed. The volume and timing of distributions under the ATM Program, if any, will be determined at the sole discretion of the Company. Distribution of the Common Shares under the ATM Program will be made pursuant to the terms of an equity distribution agreement (the “Distribution Agreement”) dated March 23, 2021 entered into between the Company and ATB Capital Markets (the “Agent”).

The ATM Program will be effective until the earlier of the issuance and sale of all of the Common Shares issuable pursuant to the ATM Program and the date on which the receipt issued for the Company’s base shelf prospectus dated March 18, 2021 (the “Base Shelf Prospectus”) ceases to be effective in accordance with Canadian Securities laws, unless terminated prior to such date by the Company or the Agent. As Common Shares sold in the ATM Program will be issued and sold at the prevailing market price at the time of the sale, prices may vary among purchasers during the period of distribution. The Company expects to use the net proceeds from the ATM Program to further its business objectives, which include maintaining its leadership and strength in the cannabis 2.0 products market, expanding its cannabis 1.0 products, and continuing to refine and improve its processes and throughput capabilities, as well as for general corporate purposes, which may include: working capital; capital expenditures; debt repayments; and potential future acquisitions.