TORONTO, June 30, 2020 (GLOBE NEWSWIRE) -- Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the “Company”), a consumer packaged goods company in the cannabis products market, is thrilled to announce that its wholly owned subsidiary, Dosecann LD Inc. (“Dosecann”) has received its Cannabis Research Licence from Health Canada pursuant to the Cannabis Act. This licence permits Dosecann to administer cannabis extracts, edible cannabis and cannabis topicals to human subjects for purposes of palatability and sensory testing at its state-of-the-art facility located in Charlottetown, Prince Edward Island.
Dosecann has spent the last few years developing highly accurate, proprietary processes in order to create the Company’s first-class suite of cannabis products, however, due to regulatory restrictions, the product development team was unable to fully evaluate the impact of cannabis infusion on the taste of its edible products. With this licence, Dosecann can now conduct broader in-house testing, incorporating consumer input and feedback on attributes such as flavour, aroma, texture or mouthfeel, to better evaluate later-stage product formulations.
“Up until now, our team of product developers at Dosecann knew we had great tasting non-infused formulations, but we were unable to assess the impact of the addition of cannabis extracts. For food product developers, it is critical that we have the ability to quickly evaluate different product attributes; a tool that wasn’t available to us until now,” said Peter Crooks, Chief Product Innovation Officer, Dosecann. “We will very quickly begin to apply the ability, under this research licence, to conduct organoleptic assessments in order to evaluate the impact of different cannabis extracts on our edible formulations. Having this ability to conduct in-house testing will lead to better tasting products for our consumers, generate additional proprietary knowledge into our approach to flavour development, processing and manufacturing, and support the optimization of the cannabis extracts used in our different edible product segments.”
Hugo Alves, CEO of Auxly added: “This is a key license for Auxly’s product innovation strategy and our efforts to develop incredible cannabis products that deliver on a consumer promise of quality, safety and efficacy. The incorporation of consumer input and feedback during product development is critical to those efforts and has been demonstrated repeatedly to reduce costs and time to market and increase product acceptance by consumers. Peter and his team at Dosecann now have all of the tools they need to innovate and delight consumers with new and exciting cannabis products, all accurately dosed and manufactured to Dosecann’s exacting standards.”
Auxly also announces that it has granted 640,000 options to purchase common shares of the Company (the "Options") to certain officers of the Company pursuant to the Company’s equity incentive plan (the "Plan"). The Options will vest in equal tranches over the following three years and are exercisable at a price of $0.30 per common share. The Options have a term of 5 years and are subject in all respects to the terms of the Plan and the requirements of the TSX Venture Exchange.
ON BEHALF OF THE BOARD
"Hugo Alves" CEO
About Auxly Cannabis Group Inc. (TSX.V: XLY)
Auxly is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, wellness and adult-use markets. Auxly's experienced team of industry first-movers and enterprising visionaries have secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities and leading research and development infrastructure in order to create trusted products and brands in an expanding global market.
Learn more at www.auxly.com and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.
Notice Regarding Forward Looking Information:
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or information that certain events or conditions "may" or "will" occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: the proposed operation of the Dosecann facility; the Company’s execution of its product development and commercialization strategy; the anticipated benefits of the Company’s research and development initiatives; consumer preferences; political change, future legislative and regulatory developments involving cannabis and cannabis products; and competition and other risks affecting the Company in particular and the cannabis industry generally.
A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this release including, but not limited to, whether: Dosecann is able to maintain the Cannabis Research Licence and its other current licences, and obtain and maintain all other necessary governmental and regulatory authorizations and permits to operate its facility and conduct business; the success of Dosecann’s research strategies and the applicability of the discoveries made therein; the acceptance and demand for future Dosecann products by consumers and provincial purchasers; and general economic, financial market, regulatory and political conditions in which the Company operates will remain the same. Additional risk factors are disclosed in the annual information form of the Company for the financial year ended December 31, 2019 dated May 13, 2020.
New factors emerge from time to time, and it is not possible for management to predict all of those factors or to assess in advance the impact of each such factor on Auxly’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The forward-looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward-looking information speaks only to such assumptions as of the date of this release. In addition, this release may contain forward-looking information attributed to third party industry sources, the accuracy of which has not been verified by Auxly. The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. Readers should not place undue reliance on forward-looking information contained in this release.
The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, Auxly does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
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.