Auxly Cannabis Group Inc. Achieves Financial Milestone with Debt Reduction Transactions

Toronto, July 8, 2025 — Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF), a vertically integrated cannabis company operating within the health care sector’s pharmaceuticals industry, has announced the successful completion of two significant financial transactions. These transactions mark a pivotal moment in the company’s strategic execution, aimed at strengthening its financial position and unlocking future growth potential.

The transactions, announced on June 19, 2025, involved the amendment and extension of Auxly’s credit facility led by the Bank of Montreal (BMO) and the full settlement of all amounts owed to Imperial Brands plc (Imperial Brands). This strategic move has resulted in a materially stronger balance sheet for Auxly, providing the company with enhanced financial flexibility to pursue growth opportunities.

Key outcomes of these transactions include:

  • Debt Reduction: Auxly has successfully eliminated approximately $21 million in debt from its balance sheet, significantly improving its financial health.
  • Strengthened Financial Position: The reduction in debt and the restructuring of the credit facility have fortified Auxly’s financial standing, allowing for more strategic investments.
  • Growth Potential: With a more robust balance sheet, Auxly is now better positioned to invest in future growth initiatives, aligning with its long-term business objectives.

These developments are seen as a turning point for Auxly, reflecting the company’s focused efforts to streamline its capital structure and ensure the long-term sustainability of its operations. As a leading player in the consumer packaged goods segment of the cannabis market, Auxly’s strategic financial maneuvers are expected to bolster its competitive edge and support its ongoing expansion efforts.

For more information, visit Auxly’s official website at www.auxly.com .

Company Overview

Auxly Cannabis Group Inc. is a vertically integrated cannabis company that invests in and supports cannabis cultivation companies. Operating globally, Auxly serves customers worldwide and is listed on the Toronto Stock Exchange. As of July 6, 2025, the company’s close price was CAD 0.135, with a market capitalization of CAD 164,770,000. The company’s price-to-earnings ratio stands at 7.69, reflecting its financial performance within the health care sector’s pharmaceuticals industry.