News Release

Auxly Reports Fourth Quarter and Full Year 2021 Financial Results and Provides Outlook for 2022

TORONTO, Ontario, March 31, 2022 – Auxly Cannabis Group Inc. (TSX ‐ XLY) (OTCQX: CBWTF) (“Auxly” or the “Company”), a leading consumer packaged goods company in the cannabis products market, today released its fourth quarter and full year 2021 financial results. These filings and additional information regarding Auxly are available for review on SEDAR at All amounts are Canadian dollars except common shares (“Shares”) and per Share amounts.

2021 Highlights

 —  Recorded net revenues of $83.8 million in 2021, an increase of 79% compared to 2020;

 —  Fourth quarter net Cannabis revenues of $29.3 million, a 20% increase QoQ;

 —  Maintained the #1 LP position in Canada for Cannabis 2.0 product sales1 in 2021, increasing its market share to approximately 15% (up from 14% in 2020);

 —  Continued to dominate national vapour sales with its award‐winning portfolio, achieving 23% market share for the year (up from 19% in 2020), and securing the #1 LP position;

 —  Exiting 2021 as the 5th largest LP in Canada by share of market based on total dollar sales, securing 7.4% in the fourth quarter;

 —  Successfully expanded its branded product offering into dried flower and pre‐roll categories with the launch of new and exciting product formats that include the award‐winning Back Forty 40s, as its dried flower portfolio led the growth in the category at OCS, growing 189% and securing the #7 LP position in national sales in Q4;

 —  Enhanced the Company’s cultivation capabilities and vertical integration with the acquisition of its joint venture project, Auxly Leamington Inc. (formerly Sunens);

 —  Strengthened its Board of Directors with the appointment of Murray McGowan, strategic partner Imperial Brands’ Chief Strategy and Development Officer;

 —  Strengthened the Company’s financial position with the sale of two non‐core assets and extension of Imperial Brands $123 Million convertible debenture;

 —  SG&A remained relatively flat year‐over‐year while the Company continued to enhance and expand its product portfolio, increasing sales by almost 80%;

 —  Successfully grew national brand awareness across all four in‐house proprietary brands as the Company continued to build deeper connections with its targeted consumers, delivering differentiated and innovative products that meet their growing needs and demands.

Read full release on GlobeNewswire here.

Auxly Financials and Filings.