Mr. Hugo Alves reports

AUXLY REPAYS $5 MILLION INVENTORY LOAN

Auxly Cannabis Group Inc. has repaid in full all principal and interest outstanding on its $5-million inventory loan owing to GrassHopper Capital Inc. The loan repayment was paid with cash on hand and is expected to result in annualized interest expense savings of approximately $900,000.

"We would like to thank GrassHopper for its financial support and partnership over the past two years. Our business is growing profitably and is now in the position to strategically allocate capital. Our revenue is growing and our stable cost base is providing operating leverage to our profitability, which is translating to free cash flow. We will continue to evaluate capital allocation decisions prioritizing organic growth investments and strengthening our balance sheet. In this case, solidifying our balance sheet and reducing interest expense was an obvious choice for deploying our excess cash," said Hugo Alves, chief executive officer of Auxly.

About Auxly Cannabis Group Inc.

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

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