TORONTO, Aug. 01, 2018 (GLOBE NEWSWIRE) -- Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly"), is pleased to announce that its strategic down-stream retail partner Inner Spirit Holdings Ltd. ("Inner Spirit"), has received all of the necessary exchange and regulatory approvals to commence trading publicly on the Canadian Securities Exchange under the symbol “ISH” as of August 1, 2018.



Pursuant to the requirements of National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues and applicable Canadian securities legislation, Auxly announces that in connection with the completion by Inner Spirit of its initial public offering on July 31, 2018 (the "IPO"), Auxly has acquired 7,058,824 units of Inner Spirit, with each unit consisting of one common share of Inner Spirit (each a "Common Share") and one-half of one Common Share purchase warrant of Inner Spirit (for a total of 3,529,412 warrants) in consideration for an aggregate purchase price of $1,058,823.60, with each warrant entitling the holder to purchase one Common Share at an exercise price of $0.30 per Common Share for a period of 24 months from the date of issuance. Auxly acquired the aforementioned securities pursuant to the exercise of pre-emptive rights granted to it under the terms of a strategic alliance agreement dated January 8, 2018 between Auxly and Inner Spirit. Following the completion of the IPO, Auxly owns 25,941,177 Common Shares of Inner Spirit, representing approximately 15% of the issued and outstanding Common Shares of Inner Spirit, and warrants to purchase an aggregate of 4,191,177 Common Shares of Inner Spirit.

The Common Shares were acquired by Auxly for investment purposes. Auxly will evaluate its investment in Inner Spirit from time to time and may, depending on various factors including, without limitation, Inner Spirit's financial position, the price levels of the Common Shares of Inner Spirit, conditions in the securities markets and general economic and industry conditions, Inner Spirit's business or financial condition, and other factors and conditions that Auxly may deem appropriate, increase, decrease or change its ownership over the Common Shares or other securities of Inner Spirit in the future but has no current plans or future intentions to do so.

An early warning report pursuant to the requirements of applicable securities laws has been issued by Auxly and is posted to www.sedar.com and is available on request at the number and address below.

Further information on the Initial Public Offering can be found in Inner Spirit’s final prospectus, dated July 20, 2018, filed under Inner Spirit’s profile on SEDAR at www.sedar.com.

ON BEHALF OF THE BOARD

"Chuck Rifici" Chairman & CEO

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

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.

Investor Relations:

For more information about investing in Auxly Cannabis Group or to obtain a copy of the early warning report filed by Auxly, please visit: http://www.auxly.com or contact our Investor Relations Team:

Email: IR@auxly.com

Phone: 1-833-695-2414

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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

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.