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Auxly AUXLY REPORTS THIRD QUARTER 2021 FINANCIAL RESULTS Reports Continued Growth in Revenues and Canadian Recreational Market Share News Release TORONTO , Ontario , November 15 , 2021 - Auxly Cannabis Group Inc. ( TSX - XLY ) ( OTCQX : CBWTF ) ( " Auxly " or the " Company " ) , a leading consumer packaged goods company in the cannabis products market , today released its financial results for the three and nine months ended September 30 , 2021 . These filings and additional information regarding Auxly are available for review on SEDAR at www.sedar.com . All amounts are Canadian dollars except common shares ( " Shares " ) and per Share amounts . Q3 2021 Highlights and Subsequent Events • Total net revenues of $ 24.5 million for the three months ended September 30 , 2021 improved by approximately 95 % year over year and 17 % sequentially . • Adjusted EBITDA of negative $ 6.5 million , improved modestly over the same period in 2020 , however , increased over the previous quarter primarily as a result of higher cost of sales associated with changes in product mix and additional costs associated with the introduction of new products . • • Continued growth in national recreational cannabis sales , maintaining the # 1 LP position in Cannabis 2.0 sales with 15.6 % market share and securing the # 6 LP position in total national recreational cannabis sales in the quarter , with continued growth in the month of October moving the Company into the # 5 LP position with 7.3 % share of market¹ . Continued leadership in new product innovation with the launch of new and differentiated SKUs throughout the quarter , including the introduction of Back Forty 40s , and Kolab Project 132 Series Live Resin Black Cherry Punch Soft Chews , Canada's first cannabis - infused live resin edible . Strengthened its Board of Directors with the appointment of Murray McGowan , Chief Strategy and Development Officer for Imperial Brands . Q3 Highlights For the three months ended : ( 000's ) Sept 30 , 2021 Sept 30 , 2020 Change Percentage Change Total net revenues $ 24,493 $ Net income / ( losses ) * ( 13,527 ) 12,587 ( 17,799 ) $ 11,906 95 % 4,272 24 % Net income / ( loss ) from continuing operations * ( 13,527 ) ( 17,597 ) 4,070 23 % Adjusted EBITDA ** ( 6,485 ) ( 6,684 ) 199 3 % Weighted Average Shares outstanding 825,612,944 631,949,685 193,663,259 31 % 1 Source : Headset Canadian Insights as of November 2 , 2021 1