XLY Auxly Cannabis Group Inc

As 2020 comes to a close, Kolab Project caps a year of sales growth and accolades with the introduction of a new product targeted to experienced cannabis connoisseurs looking for a natural-flavour experience – Kolab Project 232 Series live terpene 510 vape cartridges. Developed using a flash-freeze extraction method that preserves the natural terpene profile found in the cannabis plant, Kolab Project 232 Series offers a high-quality blend of terpene-rich extract and distillate, precision calibrated and delivered in Kolab Project’s premium vape hardware. Kolab Project is a cannabis brand owned and operated by Auxly Cannabis Group (TSX.V – XLY) (“Auxly”).

The launch of 232 Series tops a successful first full year of commercial operations for Kolab Project. Kolab Project vapes are the number-one selling brand in Auxly’s portfolio1, and Auxly secured the number-one share position in Canada for vape products this past November2, in both retail and online sales. According to the latest industry data, vapes are the top Cannabis 2.0 product with Canadians, accounting for two-thirds of the 2.0 category and approximately 16% of the overall cannabis market.

“One year ago, we unveiled Auxly’s 2.0 product offering, along with a commitment to launch new and innovative products in order to lead the 2.0 market,” said Hugo Alves, CEO, Auxly. “Achieving the number 1 position for vape sales in Canada in the month of November with an approximate 25% market share3 is a validation of our strategy and reflects our entire team’s dedication to innovating to meet evolving consumer demand.”

Kolab Project 232 series references the mid-range temperature of 232 degrees Celsius that causes terpenes and cannabinoids to boil without burning, thereby maximizing the flavour and natural expression of the true-to-strain experience. Kolab Project is launching 232 Series with an Ice Cream Cake strain limited edition. Ice Cream Cake is an Indica-dominant hybrid that presents a unique aroma and flavour profile – a sweet, almost-vanilla like taste combined with a powerful diesel finish. With dominant terpene profiles of Limonene and Linalool, Ice Cream Cake live terpene cartridges provide 86+% potency and are offered in biodegradable packaging.

“The Kolab Project consumer is typically experienced with cannabis, appreciates high potency and our research tells us that they value strain-specific, cannabis-derived terpene experiences,” said Brad Canario, Brand Director, Auxly. “Vapes are a rapidly growing category and we’re delighted to offer this terpene-rich product in a limited edition.”

Kolab Project 232 Series comes in 0.5 g cartridges at launch and is available to order for provincial wholesalers across Canada, and available in stores now in Alberta. 232 Series is developed and manufactured in Charlottetown, Prince Edward Island, and consumers can watch out for additional 232 Series strains in coming months.

Recent year-end consumer and industry award wins and nominations recognize Kolab Project’s achievements in 2020. The recently announced kind Magazine awards singled Kolab Project out for Best Hybrid Pre-roll of the Year, as determined by a panel of 150 budtenders across the country. Further, Kolab Project is a finalist for two ADCANN 2020 Awards, celebrating the best in cannabis advertising and marketing. For Campaign of the Year, Kolab Project Recycles is recognized for the first industry-wide vape recycling program in Canada, available in more than 100 retail stores nation-wide. And Kolab Project’s Vape Packaging is a finalist for Best Packaging Design, recognized for its minimalist design and for introducing 100% biodegradable and recyclable packaging. Voting for the ADCANN Awards is live and open until December 31, 2020.

About Kolab Project        Kolab Project is a cannabis brand, wholly owned by Auxly Cannabis Group Inc., that 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. Kolab Project cannabis products, available at licensed cannabis retailers across Canada, include premium pre-rolls, vapes, soft chews and chocolate. Visit us at kolabproject.com.

About Auxly Cannabis Group Inc. (TSX.V: XLY) Auxly is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, wellness and adult-use markets. Auxly's experienced team of industry first-movers and enterprising visionaries have 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.Learn more at www.auxly.com and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.

For more information please contact:Scott Campbell, 647-402-4957, press@auxly.com 

Notice Regarding Forward Looking Information:

This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or information that certain events or conditions "may" or "will" occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: Auxly’s execution of its product development and commercialization strategy; consumer preferences, political change, future legislative and regulatory developments involving cannabis and cannabis products; and competition and other risks affecting Auxly in particular and the cannabis industry generally.

A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this release including, but not limited to whether: there is acceptance and demand for Kolab Project products by consumers and provincial purchasers; and general economic, financial market, regulatory and political conditions in which Auxly operates will remain the same. The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

1 Auxly Internal Sales Data2 Headset Canadian Insights, Canadian vape sales for the month of November, 20203 Ibid note ii

Photos accompanying this announcement are available at:https://www.globenewswire.com/NewsRoom/AttachmentNg/8e2d5b63-fcbc-4424-a61b-4b56ba00f259https://www.globenewswire.com/NewsRoom/AttachmentNg/6c9a7277-de6d-4153-8f90-39b183d8ae09