Mr. Hugo Alves reports

AUXLY IS READY TO GO FOR 2.0: REVEALS PORTFOLIO OF CANNABIS PRODUCTS

Auxly Cannabis Group Inc. has unveiled its "Cannabis 2.0" products in vape, chocolate and chewable formats, which are legally available for sale beginning today under its signature brands: Kolab Project; Foray; and Dosecann.

"Having our initial suite of Cannabis 2.0 products ready to go on the first day sales are legal in Canada is a huge milestone for our company," commented Hugo Alves, chief executive officer, Auxly. "Our mission is to make branded cannabis products that consumers love and grow to trust. Our experts at Dosecann have developed high-quality vapes, chocolates and chewables, with consumer safety and enjoyment as our top priorities. We are excited to introduce Canadian consumers to our products and our brands on the launch of Cannabis 2.0 and will continue to roll out new and innovative products in the coming quarters as we look to lead, not follow, in the 2.0 market and beyond."

Auxly's in-house brands -- targeting a broad spectrum of cannabis consumers

Auxly has taken a consumer-centric approach to building a winning portfolio of brands and products. Auxly's four proprietary brands -- Kolab Project, Foray, Dosecann and Robinsons -- address key market segments and multiple price points across wellness and adult-use markets.

The company's initial product portfolio will be launched under three of the company's four brands -- Kolab Project, Foray and Dosecann. The launch of the Robinsons brand will coincide with the release of its premium dried flower, which is produced at its craft indoor facility in Kentville, N.S. The company intends to develop a line of premium cannabis products under the Robinsons brand, based on the output of its Robinsons outdoor grow (announced by the company on Nov. 15, 2019), located in Hortonville, N.S.

Diverse brand platform and 2.0 product offering

Kolab Project

Kolab Project is a platform dedicated to art, design and culture. Its mission is to provide Canadians with a carefully curated selection of exceptional cannabis products, while championing high-quality, purposeful goods produced in collaboration with culturally relevant creators. The brand aims to connect with those actively in the cannabis category that have an appreciation for the positive impact that art, culture and design have on humanity.

Vapes

Kolab Project vape pens will be offered in several different profiles, specifically high-potency tetrahydrocannabinol and cannabidiol formulations. Kolab Project's vapes contain only pure, high-grade cannabis distillate and botanical terpenes; they do not contain any other ingredients. Kolab Project's tetrahydrocannabinol formulations and terpene blends were inspired by popular strains, and the potency and terpenes are tailored to a more experienced cannabis consumer.

Kolab Project vape pens will initially be available as cartridges and disposables in indica, sativa and hybrid varieties, as well as a cannabidiol variety in a disposable format.

Soft chews

Kolab Project's soft chews are designed and developed to deliver robust, sophisticated flavours for the cannabis edible connoisseur. Free from artificial ingredients or animal products, this curated collection of soft chews is perfect for anyone seeking a mindful journey outside the norm.

Kolab Project soft chews will be available in grapefruit-hibiscus, lemon-lavender and apple-green-tea flavours, as well as in tetrahydrocannabinol-dominant, balanced and cannabidiol-dominant packs. The chews are delicious, high quality, vegan and gluten-free. Kolab Project soft chews are evenly dosed in each piece and conveniently sized.

Foray

Foray is an accessible entry point for anybody -- at any stage of their cannabis journey. Designed for the curious, Foray is an approachable brand that aims to both celebrate and educate one's foray into cannabis, ultimately inviting them to see cannabis differently. The legalization of cannabis in Canada brings tremendous opportunity to educate and introduce (or reintroduce) cannabis to a new class of consumers, and Foray aims to be a trusted provider and guide through a consumer's cannabis experience.

Vapes

Foray brings a range of high-quality vape products to market in slightly lower tetrahydrocannabinol potency, containing only high-grade cannabis distillate and carefully selected botanical terpene blends to ensure a pleasant experience for a consumer's entry into the category. Foray vape pens do not contain any other ingredients. Vape cartridge formats will be available in sativa, indica, hybrid and balanced formulations, while its disposable formats will also include a cannabidiol variety.

Chocolates

Foray's chocolates are made exclusively from premium, single-origin, Belgian chocolates, expertly selected and blended to make a consumer's foray into cannabis luxurious and delicious. Made with all-natural ingredients and no artificial flavours, Foray chocolates will initially come in three varieties -- dark chocolate, vanilla chai and salted caramel. Foray chocolates will initially be available in serving sizes of 10 milligrams of tetrahydrocannabinol per square or 2.5 milligrams of tetrahydrocannabinol per four squares. Additionally, the salted-caramel chocolate will be available in a balanced tetrahydrocannabinol/cannabidiol formulation.

Foray's dark chocolate is made with a perfectly balanced, premium, single-origin, Mexican chocolate that displays complex notes of cinnamon, hazelnut, coffee and gingerbread. Consumers are encouraged to savour their experience as the flavours of this subtly bittersweet chocolate unfold on their palate.

Foray's vanilla chai chocolate is made with a single-origin, Ghanaian chocolate that is delicately flavoured with chai spices and vanilla. Also displaying notes of cocoa, red fruit and chestnut, this premium chocolate has a rich, creamy mouth feel.

Foray's salted caramel chocolate is made from an expertly selected blend of premium white and milk chocolates, enhanced with notes of rich caramel with a subtle salty finish. With a balanced profile of tetrahydrocannabinol and cannabidiol, this chocolate is a perfect indulgence.

Soft chews

Foray's soft chews are crafted to deliver deliciously bright, juicy flavours. These pectin-based chews, free from any artificial ingredients or animal products, offer a range of potencies so that they can be enjoyed by anyone.

Foray soft chews will initially be available in raspberry-vanilla, peach-mango and pineapple-orange flavours in tetrahydrocannabinol-dominant, balanced and cannabidiol-dominant packs.

Like Kolab Project's soft chews, Foray's soft chews are made with the highest-quality, traceable, vegan ingredients, combined with ultrapure cannabis distillate produced in-house at Dosecann. Foray's rich soft chews offer consumers unparalleled flavour and the security that each piece has been precisely dosed to ensure a satisfying experience.

Dosecann

Dosecann is a wellness brand built on pillars of quality, safety and efficacy. Backed by science and advanced research and development, Dosecann products are driving today's innovation and establishing tomorrow's standards. Dosecann is cannabis -- down to a science.

Dosecann's Cannabis 1.0 oil-in-bottle and oil-in-spray formats are currently available for sale, with capsule and lozenge formats expected in the second quarter of 2020 and topicals in Q3 2020.

Auxly cares about consumer safety

Auxly is committed to ensuring consumers have access to quality products they can trust. For that reason, Auxly's safety board, on which Imperial Brands PLC's group science and regulatory affairs director sits: oversees the company's entire product development life cycle; carefully evaluates and monitors all of the company's products before and after they are released for sale; and ensures that consumers have access to clear and accurate information on product risks.

Vape development

Like all of Auxly's branded cannabis products, its vapes have been developed with quality, safety and efficacy at the heart of the product development process. The company has gone above and beyond applicable regulatory requirements with both its hardware and its formulations, including conducting voluntary emissions testing at a leading third party lab, to earn the trust of Canadian consumers.

All of Auxly's products are formulated and manufactured at Dosecann, Auxly's commercial-scale extraction, analytical testing, product development and manufacturing hub, located in Charlottetown, PEI. Dosecann, in collaboration with KGK Science Inc., the company's wholly owned contract research organization, will continue to push industry standards in terms of product safety, quality, efficacy and innovation.

About Auxly Cannabis Group Inc.

Auxly Cannabis Group is an international cannabis company that is dedicated to bringing innovative, effective and high-quality cannabis products to the medical, wellness and adult-use markets.

We seek Safe Harbor.