Auxly's Subsidiary Dosecann Enters into Manufacturing and Distribution Agreement with dosist™, an Award-Winning Wellness Company
TORONTO, June 24, 2020 (GLOBE NEWSWIRE) -- Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the “Company”), a leading consumer packaged goods company in the derivative cannabis products market, is pleased to announce that its wholly-owned subsidiary Dosecann LD Inc. (“Dosecann”) has entered into an agreement with GSW Creative Corporation Canada Inc., doing business as dosist™ (“dosist”), to manufacture their proprietary wellness vape devices at Dosecann’s facility in Prince Edward Island.
Dosecann will utilize its production capabilities, capacity, and world-class expertise in cannabis derivative products to manufacture dosist’s innovative dose control solutions. dosist will also utilize Auxly’s well-established national distribution channels to bring its proprietary new innovations to Canadians nation-wide, including their newly engineered dose pen 100, their new range of high potency formulas for THC-forward experiences called thc-plus, and their new rechargeable dose pen system.
“We are thrilled to expand the Dosecann business to include the manufacture and distribution of dosist’s proprietary wellness devices,” said Hugo Alves, CEO of Auxly. “Our arrangement with dosist allows us to leverage our sales and distribution reach and maximize the use of Dosecann’s manufacturing capacity and expertise in making the highest quality products for consumers. Also, as a premium wellness-focused brand with an international track record of success in California and here in Canada, dosist is a perfect fit within Auxly’s existing portfolio of branded cannabis products. We look forward to building our relationship with dosist and continuing to deliver a compelling portfolio of cannabis products that delight consumers.”
The Company remains committed to the development and success of its diverse, in-house platform of branded products and realizing its vision of becoming a global leader in branded cannabis products that deliver on the consumer promise of quality, safety and efficacy. Auxly believes that the manufacture of dosist’s technology is a great complement to its existing suite of products. The arrangement allows the Company to maximize production capacity at Dosecann and generate additional cash flow to support the business as it moves towards profitability.
“At dosist, our vision continues to be anchored in providing targeted formulas and precise dosage to Canadians through our proprietary technology with the objective of providing a safe, effective and dose controlled experience,” said Lenny Louis, Chief Commercial Officer for dosist. “We are excited and confident that this new partnership with Dosecann will help ensure we deliver on this vision and improve our ability to provide greater access to dosist for the Canadian wellness consumer.”
Pursuant to the agreement, dosist will provide Dosecann with an exclusive license to the intellectual property required for Dosecann to manufacture, distribute and sell Dosist’s branded cannabis products, and the Company in turn will receive certain fees for such manufacture and distribution. The Company has the right of first offer to manufacture any other branded cannabis product introduced by dosist in the future, at the Company’s election.
The agreement is for a three-year term, subject to renewal for an additional two years.
ON BEHALF OF THE BOARD
"Hugo Alves" CEO
About Dosecann LD Inc.
About Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF)
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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. Forward-looking information includes, but is not limited to: Auxly's execution of its product development and commercialization strategy, the anticipated benefits of the partnership with dosist, consumer preferences, political change, future legislative and regulatory developments involving cannabis and cannabis products; and competition and other risks affecting Auxly and Dosecann 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 its current licences and obtain and maintain all other necessary governmental and regulatory authorizations and permits to conduct business, the acceptance and demand for Dosecann and dosist products by consumers, and general economic, financial market, regulatory and political conditions in which Auxly and Dosecann operate will remain the same. Additional risk factors are disclosed in the annual information form of Auxly 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.
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