Auxly to Chop Conversion Price on $100 Million in Debt to C$0.74

Auxly Announces Proposed Reduction to Conversion Price of 6% Unsecured Convertible Debentures Due January 16, 2020

TORONTO, Oct. 18, 2019 (GLOBE NEWSWIRE) — Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF) (“Auxly” or the “Company”) today announced that it has received approval from the TSX Venture Exchange (the “TSXV”) to amend the conversion price under its 6% unsecured convertible debentures in the principal amount of $100,000,000 maturing on January 16, 2020 (the “Debentures”) from $1.55 per share to $0.74 per share.

The Company will provide written notice (the “Notice”) to holders of Debentures advising them of the proposed reduction in the conversion price and providing holders with the opportunity to immediately convert the principal amount of their Debentures at the revised conversion price. If a holder consents to the reduction in the conversion price but fails to elect to convert the outstanding principal amount of its Debenture within the time specified in the Notice, the Company will have the right to prepay all or any portion of the outstanding principal amount of a consenting holder’s Debenture at any time on or prior to January 16, 2020. Should no Debentures be converted, Auxly has sufficient cash available to repay the Debentures when they come due.

About Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF)

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 has secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities and leading product 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/

Original Press Release

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