Auxly Announces Normal Course Issuer Bid

• Normal Course Issuer Bid (NCIB): On April 14, 2026, Auxly received TSX acceptance for a buyback program to repurchase up to 68.9 million common shares (less than 5% of outstanding). The program runs from April 20, 2026, to April 19, 2027, funded by existing cash resources ($32.3M reported in March).
• Ayurcann M&A Update: On April 13, 2026, Auxly was designated the "Back-Up Bid" for Ayurcann Holdings Corp.'s assets after its stalking-horse bid was not selected as the winning bid. The $2.0M DIP financing remains in place with a super-priority charge. If the primary bidder fails to close by May 15, 2026, Auxly becomes the winner at its original amount and is repaid the facility plus interest/fees.
• Financial Context: March 26, 2026 results showed FY 2025 Net Revenue of $151.5M (+24% YoY) and Adjusted EBITDA of $43.8M (+64% YoY). Cash balance was $32.3M with Debt/EBITDA at 1.1x.
• Capital Allocation: Management plans to invest $10-$12M in capital expenditures for the Leamington facility and international export capabilities in 2026, funded by operating cash flow.

• NCIB Impact (Routine - Positive): The buyback is a standard capital allocation tool indicating management confidence in valuation and liquidity. It provides price support but does not fundamentally alter the business model or growth trajectory. Given the company's strong cash position ($32M) and low debt, this signals financial health rather than desperation for share price support.
• Ayurcann Update (Routine - Neutral/Negative): Being designated a "Back-Up Bid" is a minor setback compared to winning immediately, but it mitigates risk significantly. The DIP financing is secured with super-priority status, protecting Auxly's capital if the deal falls through. This prevents a total loss of the $2M investment and potential acquisition upside remains intact as a contingency.
• Earnings Trajectory: The strong FY 2025 results (64% EBITDA growth) provide the cash flow necessary to fund both the NCIB and the Ayurcann DIP facility without dilution or new debt issuance. This materializes previous expectations of profitability set in late 2025.
• Overall: The news confirms financial stability but lacks a transformative catalyst (e.g., winning the M&A deal outright, major new product launch). It is consistent with the "profitable growth" narrative established in Q3/Q4 2025 results.

• Company: Auxly Cannabis Group Inc. operates as a licensed producer in Canada.
• Flagship Project/Brand: Back Forty is the #1 cannabis brand in Canada (2025). South Point is a new premium-tier brand launched in Alberta & Ontario.
• Operations: Key facilities include Leamington (capacity upgrades planned) and Charlottetown. Market share ranked #3 among Canadian licensed producers.
• Product Mix: Focus on dried flower (~62% of sales), pre-rolls, and all-in-one vapes (leader in category with 10 of top 15 SKUs).