Auxly Provides Update on Stalking Horse Bid for Ayurcann

TORONTO, April 13, 2026 /PRNewswire/ – Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) („Auxly“ or the „Company„), a leading consumer packaged goods company in the cannabis products market, today announced that its stalking horse bid for the assets of Ayurcann Holdings Corp. („Ayurcann„) was not selected as the successful bid in the court-supervised sale process.

As previously disclosed, the stalking horse bid was submitted in the Ayurcann sale process concurrently with Auxly providing debtor‑in‑possession financing to Ayurcann in a principal amount of up to $2.0 million (the „DIP Facility„). The DIP Facility is non‑revolving, bearing interest at 12% per annum, with a 2.0% upfront commitment fee earned and paid to the Company upon execution. The DIP Facility is secured by way of a Court‑ordered super‑priority charge in favour of the Company over all of Ayurcann’s property.