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Auxly Cannabis Group Inc
Symbol XLY
Shares Issued 773,593,288
Close 2021-05-28 C$ 0.40
Recent Sedar Documents

Auxly Cannabis loses $10.5-million in Q1

2021-05-28 09:54 ET - News Release

Mr. Hugo Alves reports

AUXLY REPORTS Q1 2021 FINANCIAL RESULTS

Auxly Cannabis Group Inc. has released its financial results for the three months ended March 31, 2021. These filings and additional information regarding Auxly are available for review on SEDAR.

Q1 2021 highlights and subsequent events

  • Recorded net revenues of $10-million for the three months ended March 31, 2021, an increase of 1 per cent from the same period in 2020.
  • Maintained leadership position in cannabis 2.0 product sales with approximately 12.6-per-cent national market share in the quarter.
  • Selling, general and administrative expenses declined another 5 per cent from the previous quarter.
  • Continued to launch new innovative products to the Canadian market with the introduction of the company's first cannabis concentrate, 232 Series Diamonds under its Kolab Project brand, and an industry-leading, high-potency topical, Dosecann daily relief CBD (cannabidiol) cream.
  • Welcomed Andrea Fraser to the Auxly family as chief people officer.
  • Further strengthened the company's balance sheet with an $8-million private placement offering of units.

Q1 highlights

Hugo Alves, chief executive officer of Auxly, commented: "As felt throughout the industry, this first quarter of 2021 proved to be a challenging one for Auxly as we continued to combat industry headwinds and the impacts from the COVID-19 pandemic. However, while sales to our provincial customers were impacted, the performance of our products at a retail level remained exceptionally strong. We are very encouraged by the growth in our retail sales and continued market share achievements, which has reinforced our leadership position in the Canadian cannabis 2.0 market. We intend to build on our success in the 2.0 category and introduce new product formats, including cannabis 1.0 product formats, that expand our product offering and delight our consumers, as we remain committed in our vision of being a global leader in branded cannabis products and building long-term stakeholder value."

Outlook

In 2021, Auxly is focused on building upon the company's success as a market leader in cannabis 2.0 products, while continuing to advance the company's focused expansion of its dried flower, preroll, oil and capsule product offerings. The company's overall objectives for 2021, which may be impacted by the COVID-19 pandemic are as follows:

  • Continued leadership and strength in the cannabis 2.0 products market;
  • Focused expansion of cannabis 1.0 products;
  • Continue to take measures to improve cash flows and finance the business;
  • Leverage the Sunens facility to establish a secure supply of cannabis and reduce reliance on open market purchasing;
  • Explore possible cannabis market entry strategies in regulated international markets, on an asset-light basis.

The company will continue to evaluate opportunities to bring new and exciting products to consumers as it continues to realize its vision of becoming a global leader in branded cannabis products that deliver on the consumer promise of quality, safety and efficacy.

About Auxly Cannabis Group Inc.

Auxly is a leading Canadian cannabis company dedicated to bringing innovative, effective and high-quality cannabis products to the wellness and adult-use markets. Auxly's experienced team of industry first-movers and enterprising visionaries has secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities, and leading research and development infrastructure in order to create trusted products and brands in an expanding global market.

We seek Safe Harbor.

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