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VANCOUVER, British Columbia, Sept. 11, 2018 (GLOBE NEWSWIRE) — Auxly Cannabis Group Inc. (TSX.V – XLY) (OTCQX: CBWTF) (“Auxly” or the “Company”) and Lotus Ventures Inc. (CSE – J)(“Lotus”) are admiring to advertise the closing of an added beforehand by Auxly to partially armamentarium the achievement of Lotus’ 22,500 aboveboard bottom Adeptness (the “Facility”) in Armstrong, British Columbia (the “Transaction”). Lotus is a backward date appellant pursuant to the Admission to Cannabis for Medical Purposes Regulations (“ACMPR”) and anticipates commutual the architecture of the Adeptness by the end of September 2018.



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Pursuant to the Transaction, which is in accession to Auxly’s $1,000,000 cable of accepted shares of Lotus completed in January 2018, Auxly avant-garde an added $4,000,000 to Lotus to partially armamentarium the achievement of the Facility. In affiliation with the Transaction, Auxly was issued an added 3,755,868 accepted shares of Lotus (the “Purchased Lotus Shares”) and will be advantaged to acquirement or contrarily absolute the auction of 50% of the Facility’s absolute assembly which is accepted to be 2,000kg of cannabis per annum. Auxly additionally retains a adapted of aboriginal action to acquirement the absolute 50% of agronomics achievement from the Adeptness as able-bodied as a adapted of aboriginal abnegation to accounts a assigned allocation of the aboriginal amplification to the Adeptness and all or a allocation of any added expansions of the Facility. Following the cancellation of Lotus’ agronomics authorization at the Facility, Auxly will be advantaged to baptize one appointee to the lath of admiral of Lotus for as continued as Auxly holds at atomic 25% of the Purchased Lotus Shares. The Purchased Lotus shares are accountable to a approved authority aeon expiring four months and one day from the date of issuance.

Hugo Alves, President of Auxly commented: “Lotus is a accomplice that we amount deeply, accepting been allotment of the aboriginal accomplice of alive ally at the birth of Auxly. We are abundantly admiring to be authoritative this consecutive beforehand into Lotus to complete the buildout of the aboriginal appearance of their accepted adeptness in Armstrong, British Columbia. We abide to attending advanced to alive carefully with Lotus’ aggregation to architecture and body out added phases of this asset.”



Dale McClanaghan, President and Chief Executive Officer of Lotus commented: “Auxly is arising as a ample amateur in the administration and business of cannabis in Canada. Lotus Ventures allowances in several means from the Auxly alive relationship, in accession to admission to equity, the accord provides us with assured offtake of at atomic bisected of our assembly as able-bodied as admission to their bazaar and industry expertise. This will accredit Lotus to abound added rapidly than it contrarily would while alive appear establishing a acceptability as a top-tier Accountant Producer.”



Corporate Presentation

Auxly’s accumulated presentation and accompanying broker abstracts are accessible on our Broker Relations website: https://auxly.com/investors/, which includes a assets table of the Aggregation as of August 29, 2018. The Aggregation addendum that the cardinal of outstanding allotment acquirement warrants of the Aggregation appear in the Company’s MD&A for the acting aeon concluded June 30, 2018 was afield declared to be 67,723,835 back it should accept been 108,536,926. This alterity has been adapted in the assets table independent on the Company’s broker relations website.

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ON BEHALF OF THE BOARD

“Chuck Rifici” Chairman & CEO

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

Auxly Cannabis Group is a aggregate of entrepreneurs with a affection for the cannabis industry past, present and future. Our authorization is to facilitate beforehand for our ally by accouterment them with banking abutment and administration our aggregate industry experience. Our ally all accept altered visions, choir and cast values, and all allotment a accepted goal—to body a world-class industry based on ethics, diversity, affection and innovation.

About Lotus Ventures, Inc.  (CSE: J)

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Lotus is a backward date accountant ambassador appellant beneath the ACMPR, in alive analysis with Health Canada. The different business archetypal combines an upstream adeptness costs archetypal with Auxly and a afterwards licensing archetypal with farmer/grower ally application Lotus technology and bookish property. The aboriginal adeptness in Armstrong, B.C. is a purpose built, “state of the art” calm adeptness with proprietary processes. The aggregation has ahead appear its aboriginal farmer/grower accomplice with its added adeptness slated in Ontario. See our December 14, 2017 columnist absolution for added details. The Lotus access enables a scalable and reliable low-cost, aerial affection assembly at our BC accessories and our civic partners.

Investor Relations:For added advice about beforehand in Auxly Cannabis Group, amuse visit: http://www.auxly.com or acquaintance our Broker Relations Team: Email: [email protected]uxly.comPhone: 1-833-695-2414

Stay Connected: Follow up on Twitter @Auxlygroup

Media Enquiries (only): For media enquiries or to set up an account amuse contact:Sarah Bain, VP External Affairs Email: [email protected] Phone: 613.230.5869

Notice Regarding Advanced Looking Information:

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This account absolution contains assertive “forward-looking information” aural the acceptation of applicative Canadian balance law. Advanced advice is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and added agnate words, or advice that assertive contest or altitude “may” or “will” occur. This advice is alone a prediction. Various assumptions were acclimated in cartoon the abstracts or authoritative the projections independent in the advanced advice throughout this account release. Advanced advice includes but is not bound to: expectations of approaching growing accommodation at the Adeptness and the accompanying costs, the achievement of the planned build-out and expansions, including the timing thereof, requirements to access added costs for such build-out and expansions, the adeptness to amuse the altitude associated with the Facility’s sales license, accommodation of government approvals for acceding of permits and licenses, absolute operating achievement of the Facility, the beforehand of Lotus and timing thereof, authoritative or political change, antagonism and added risks affecting Auxly and Lotus in accurate and the cannabis industry generally.

A cardinal of factors could account absolute after-effects to alter materially from a conclusion, anticipation or bump independent in the advanced advice in this absolution including, but not bound to, whether: either Lotus or Auxly actuality clumsy accede with its corresponding obligations beneath the agreements administering the Transaction, abortion of Lotus to complete architecture of Adeptness on the timeline adumbrated or at all, abortion of Lotus to access the adapted licenses to breed and advertise cannabis products, and accepted economic, banking market, authoritative and political altitude in which Auxly and Lotus accomplish will abide the same. Added accident factors are appear in the revised anniversary advice anatomy of Auxly for the banking year concluded December 31, 2017 anachronous May 24, 2018, and in the Lotus Ventures MD&A and banking statements anachronous August 31, 2017 and May 31, 2018.

New factors appear from time to time, and it is not accessible for administration of anniversary of Auxly and Lotus to adumbrate all of those factors or to appraise in beforehand the appulse of anniversary such agency on Auxly or Lotus’ business or the admeasurement to which any factor, or aggregate of factors, may account absolute after-effects to alter materially from those independent in any advanced information. The advanced advice in this absolution is based on advice currently accessible and what administration of anniversary of Auxly and Lotus believes are reasonable assumptions. Advanced advice speaks alone to such assumptions as of the date of this release. In addition, this absolution may accommodate advanced advice attributed to third affair industry sources, the accurateness of which has not been absolute by anniversary of Auxly and Lotus. The purpose of advanced advice is to accommodate the clairvoyant with a description of anniversary of Auxly and Lotus’ management’s expectations, and such advanced advice may not be adapted for any added purpose. Readers should not abode disproportionate assurance on advanced advice independent in this release.

The advanced advice independent in this absolution is especially able by the above cautionary statements and is fabricated as of the date of this release. Except as may be adapted by applicative balance laws, anniversary of Auxly and Lotus does not undertake any obligation to about amend or alter any advanced advice to reflect contest or affairs afterwards the date of this absolution or to reflect the accident of hasty events, whether as a aftereffect of new information, approaching contest or results, or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that appellation is authentic in the behavior of the TSX Venture Exchange) accepts albatross for the capability or accurateness of this release.

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