Auxly Announces Non-Binding Agreement to Amend and Extend BMO Credit Facility and Settlement of all Amounts owing to Imperial Brands
TORONTO, Ontario, June 19, 2025 – Auxly Cannabis Group Inc. (TSX – XLY) (OTCQB: CBWTF) (“Auxly” or the “Company”), a leading consumer packaged goods company in the cannabis products market, is pleased to announce that it has entered into two agreements that will strengthen its balance sheet, reduce debt, and support long-term growth:
• A non-binding agreement (the “Term Sheet”) to amend and restate the Company’s existing syndicated credit facility led by the Bank of Montreal (“BMO”), and
• An exchange agreement (the “Exchange Agreement”) with Imperial Brands plc (“Imperial Brands”) pursuant to which all amounts owing by the Company under the outstanding convertible debenture held by Imperial Brands (the “Debenture”) will be settled in common shares of the Company (“Shares”) and pre-funded warrants to purchase Shares.
These transactions represent meaningful progress in the Company’s ongoing efforts to strengthen its balance sheet. The restatement of the credit facility will enhance the Company’s liquidity and provide increased flexibility to allocate capital toward strategic growth initiatives. Concurrently, the settlement of the Imperial Brands convertible debenture through the issuance of equity instruments will eliminate over $21 million of debt from the Company’s balance sheet. This deleveraging will improve the Company’s capital structure, reduce interest obligations and reinforce the Company’s financial stability and long-term viability.
“This refinancing marks a significant milestone for Auxly, resulting in a stronger, more resilient company,” said Hugo Alves, CEO of Auxly. “These transactions will significantly reduce our debt, strengthen our balance sheet and give us the flexibility to invest in innovation and growth. The actions support our objective of achieving sustainable, profitable growth and creating long-term value for all of our stakeholders.”
Travis Wong, CFO of Auxly, added: “These transactions materially improve and simplify our capital structure. As a result of the refinancing, we anticipate the removal of the going concern uncertainty disclosure from our financial statements which is a clear reflection of our strengthened financial position and the growing stability of our operations.”
About Auxly Cannabis Group Inc. (TSX: XLY)
Auxly is a leading Canadian consumer packaged goods company in the cannabis products market, headquartered in Toronto, Canada. Our mission is to help consumers live happier lives through quality cannabis products that they trust and love.
Our vision is to be a leader in branded cannabis products that deliver on our consumer promise of quality, safety and efficacy.
Learn more at www.auxly.com and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.
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Email: IR@auxly.com
Phone: 1.833.695.2414