Auxly Announces Closing of Previously Announced $84 Million Credit Facilities Through its Joint Venture Partner, Sunens Farms Inc.

Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the "Company") is pleased to announce that its joint venture partner, Sunens Farms Inc. (“Sunens”), has closed the previously announced $84 million syndicated credit facilities, with the Bank of Montreal (“BMO”) as Lead Underwriter.  The syndicated senior debt facility will be for $71.5 million (the “Credit Facility”) for a three-year term together with a BMO $12.5 million leasing facility (the “Leasing Facility”).

Sunens is a fully automated, purpose-built greenhouse for cannabis cultivation currently under construction in Leamington, Ontario. The proceeds of the Credit Facility will be used to fund phase one of the Sunens facility, which is expected to be substantially completed by December 2019. The Leasing Facility will finance processing equipment.

The Credit Facility and the Leasing Facility are secured by the Sunens facility, partially guaranteed by the Company and contain customary financial and restrictive covenants.

Restricted Stock Awards

The Company also announces that is has granted 3,659,837 restricted common shares of the Company (the “Restricted Shares”) at a price per share of $0.89 to certain non-executive employees pursuant to the terms of the Company’s equity incentive plan (the “Plan”), which was approved by shareholders at the Company’s recent annual general meeting.  All of the Restricted Shares vest immediately upon grant and are otherwise subject to the terms of the Plan.  Further information regarding the Plan can be found in the information circular of the Corporation dated July 30, 2019, a copy of which is available at www.sedar.com.

ON BEHALF OF THE BOARD

"Chuck Rifici" Chairman

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 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/.

Investor Relations:

For investor enquiries please contact our Investor Relations Team:

Email: IR@auxly.com
Phone: 1.833.695.2414

Media Enquiries (only):

For media enquiries or to set up an interview please contact:

Sarah Bain, VP External Affairs
Email: sarah@auxly.com 
Phone: 613.230.5869