VANCOUVER, British Columbia, Sept. 07, 2018 (GLOBE NEWSWIRE) -- Auxly Cannabis Group Inc. (TSX.V - XLY) (OTCQX - CBWTF) ("Auxly" or the "Company") is pleased to announce that further to its previously announced interim supply agreement on January 17th, 2018, the Company, through its wholly owned subsidiary Dosecann Inc. (“Dosecann”), has entered into a definitive supply agreement (the “Agreement”) with Aphria Inc. (“Aphria”). Pursuant to the Agreement, Dosecann will have the option to purchase cannabis, including dried flower and cannabis oil (collectively, “Cannabis Products”) for distribution to certain international markets, including Mexico, Portugal, and Serbia, as well as a limited amount for distribution into the Canadian market.
Subject to Aphria receiving the necessary regulatory approvals for expansion of its cultivation facilities, Dosecann will have the option to purchase up to 20,000 kilograms of Cannabis Products on an annual basis, until such time, Dosecann will have the option to purchase up to 100 kilograms of Cannabis Products on a monthly basis. The Agreement extends until January 31st, 2022 and may be renewed for additional 12-month terms. The Agreement also includes certain minimum quantities of Cannabis Products that must be purchased by Dosecann during the term.
Hugo Alves, President and Director of Auxly stated: “We are pleased to have reached a definitive supply agreement with Aphria, an industry leading operator, to supply our international distribution channels which represent an increasingly important market segment to us. This agreement serves as a key source of interim supply that bridges the gap between now and when the bulk of our streaming partners come online. We look forward to working and building a meaningful strategic relationship with the team at Aphria.”
Restricted Stock Awards
The Company also announces that is has granted 5,913,334 restricted common shares of the Company (the "Restricted Shares") at a price per share of $1.02 to certain of its 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 May 7, 2018, a copy of which is available at www.sedar.com.
ON BEHALF OF THE BOARD
"Chuck Rifici" Chairman & CEO
About Auxly Cannabis Group Inc. (XLY.V)
Auxly Cannabis Group is a collective of entrepreneurs with a passion for the cannabis industry past, present and future. Our mandate is to facilitate growth for our partners by providing them with financial support and sharing our collective industry experience. Our partners all have different visions, voices and brand values, and all share a common goal—to build a world-class industry based on ethics, diversity, quality and innovation.
Dosecann is a Canadian Licensed Dealer dedicated to developing cannabis solutions for the cannabis industry. Located in Charlottetown, PEI, Dosecann’s purpose-built, 42,000 square foot facility will be the hub for cannabis extraction, quality testing, research and development, product formulation and manufacturing.
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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: political changes in Canada and internationally, future legislative and regulatory developments involving cannabis in Canada and internationally, the Company’s ability to secure distribution channels in international jurisdiction, competition and other risks affecting the Company 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: Dosecann is able to obtain and maintain a Dealer’s Licence, the Company is able to successfully develop international distribution channels for cannabis products, Dosecann can obtain all necessary governmental and regulatory permits and approvals for the facility, including permits for import, and whether such permits and approvals can be obtained in a timely manner, and general economic, financial market, legislative, regulatory, competitive and political conditions in which the Company operates will remain the same. Additional risk factors are disclosed in the revised annual information form of the Company for the financial year ended December 31, 2017 dated May 24, 2018.
New factors emerge from time to time, and it is not possible for management to predict all of those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The forward-looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward-looking information speaks only to such assumptions as of the date of this release. In addition, this release may contain forward-looking information attributed to third party industry sources, the accuracy of which has not been verified by the Company. The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. Readers should not place undue reliance on forward-looking information contained in this release.
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.