TORONTO, Aug. 15, 2024 /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 released its financial results for the three and six months ended June 30, 2024. These filings and additional information regarding Auxly are available for review on SEDAR+ at www.sedarplus.ca. Q2 2024 Highlights and Subsequent Events The Company continues to achieve record-breaking financial results and establish new benchmarks across key metrics of revenue, margin and adjusted EBITDA; Net revenues of $29.2 million, an increase of 33% year-over-year and 16% compared to the previous quarter; Achieved an all-time record in Gross Margin on Finished Cannabis Inventory Sold[1] of 41% in the quarter, an improvement of 14% year-over-year; Improved adjusted EBITDA1 by over 580% compared to the same period in 2023, reporting an all-time record of $5.2 million; SG&A was $0.2 million lower compared to the same period in 2023, net of non-recurring restructuring costs of $0.7 million; Net income of $2.0 million and positive cash flow from operations of $2.9 million; A 48% reduction in the Company's debt1 compared to the end of 2023; Continued market leadership in the all-in-one vape category with over 32% of the total market share in the category and the #2 position among licensed producers in national vape sales2; The Back Forty brand maintains the top four all-in-one vape SKU positions nationally; Continued excellence in dried flower and pre-rolls where Back Forty's cultivar Liquid Imagination, proudly grown at the Auxly Leamington facility, secured a top ten position in national dried flower sales and Back Forty's non-infused pre-rolls secured two of the top five SKU positions in national sales. ___________________________________ 1 Non-IFRS or Supplementary financial measure. Refer to the Non-GAAP Measures section in the MD&A for definitions. 2 Hifyre IQ, as of July 17, 2024. FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE INDICATORS  For the three months ended: (000's) June 30, 2024 June 30, 2023 Change % Change Net revenues   $      29,178 $         21,990 $      7,188 33 % Gross margin on finished cannabis inventory sold* 12, 049 5,955 6,094 102 % Gross margin on finished cannabis inventory sold (%)* 41 % 27 % 14 % 52 % Net income/(loss)   2,002 (12,863) 14,865 116 % Adjusted EBITDA* 5,173 (1,078) 6,251 580 % Weighted Average Shares outstanding - basic 1,250,513,293 1,002,014,308 248,498,985 25 % For the six months ended: (000's) June 30, 2024 June 30, 2023 Change % Change Net revenues   $       54,419 $       45,958 $     8,461 18 % Gross margin on finished cannabis inventory sold* 21,618 14,898 6,720 45 % Gross margin on finished cannabis inventory sold (%)* 40 % 32 % 8 % 25 % Net income/(loss)   (24,010) (23,112) (898) -4 % Adjusted EBITDA* 7,413 (940) 8,353 889 % Weighted Average Shares outstanding - basic 1,133,676,385 978,146,905 155,529,480 16 % As at: (000's)  June 30, 2024 December 31, 2023 Change % Change Cash and equivalents $      14,257 $     15,608 $       (1,351) -9 % Total assets   260,615 261,904 (1,289) 0 % Debt   64,539 123,579 (59,040) -48 % *Non-IFRS or supplementary financial measure. Refer to the Non-GAAP Measures section in the MD&A for definitions Hugo Alves, CEO of Auxly, commented: "After our best start to a year ever, we are thrilled to report our best Q2 in history, with exceptional financial performance setting a new Q2 record in revenue and all-time records in gross margin and adjusted EBITDA. Our commitment to product quality, innovation and operational efficiency continues to drive our success. We are particularly proud of our significant gains in market share across all three of our core product categories, especially in the vapor segment where we are currently leading the growing all-in-one category, securing an impressive 32% share of market. This success is a testament to the collective efforts of our talented and dedicated employees, who work hard every day to create quality cannabis products that help our consumers live happier lives. We will be expanding the all-in-one vape portfolio with new flavour profiles under Back Forty throughout the second half of the year, while also launching a new innovative vape format under our Kolab Project brand, available in September. These achievements reflect our drive for continued growth and innovation, our dedication to reaching new financial milestones and delivering exceptional results for our shareholders.  As we look ahead, we remain passionately committed to our consumers, focused on surpassing expectations, leading with excellence and achieving sustainable, profitable growth." RESULTS OF OPERATIONS For the periods ended:        Three months June 30,               Six months June 30,  (000's) 2024 2023 2024 2023 Revenue Revenue from sales of cannabis products  Excise taxes  $    43,433 $    34,514 $    81,790 $    72,058 (14,255) (12,524) (27,371) (26,100) Total Net Revenues 29,178 21,990 54,419 45,958 Cost of Sales Costs of finished cannabis inventory sold 17,129 16,035 32,801 31,060 Inventory impairment  473 1,459 929 2,132 Gross profit/(loss) excluding fair value items  11,576 4,496 20,689 12,766 Unrealized fair value gain/(loss) on biological transformation 8,817 4,713 11,590 8,960 Realized fair value gain/(loss) on inventory  (4,464) (3,146) (6,899) (7,785) Gross Profit  15,929 6,063 25,380 13,941 Expenses  Selling, general, and administrative expenses  9,311 8,810