#Canada #Toronto #Grasshopper #Auxly #Cannabis Group

Auxly Cannabis Group's Strategic Loan Repayment

In a significant move aimed at bolstering its financial health, Auxly Cannabis Group Inc., a prominent player in the cannabis product sector, has repaid its outstanding $5 million inventory loan to GrassHopper Capital Inc. This repayment, which was completed in full, represents a crucial step for the company as it strives for enhanced financial management and strategic growth within the competitive market of consumer packaged goods.

This decision was made public on October 27, 2025, with Auxly announcing that the full payment was executed using available cash reserves. By eliminating this debt, the company expects to save approximately $900,000 per year in interest expenses, providing a substantial increase to their bottom line. This strategic financial move sets the stage for Auxly to reinvest its resources into core areas of growth, further solidifying the company’s commitment to enhancing shareholder value.

CEO's Statement on Financial Growth

Hugo Alves, Chief Executive Officer of Auxly, emphasized the significance of this repayment by thanking GrassHopper for their support over the past two years. Alves noted, “Our business is growing profitably and is now in a position to strategically allocate capital. Our revenue is increasing, and our stable cost base is providing operating leverage to our profitability, which in turn is translating into free cash flow.” He elaborated that prioritizing organic growth investments while enhancing their balance sheet was a logical and advantageous course of action.

The repayment's timing coincides with Auxly's ongoing efforts to strengthen its operations and expand its market presence in the cannabis industry, where competition is intensifying. As part of this strategy, the company remains focused on delivering quality products that meet consumer expectations and regulatory standards.

About Auxly Cannabis Group Inc.

Headquartered in Toronto, Canada, Auxly Cannabis Group Inc. is recognized as a leading organization in the Canadian cannabis marketplace. Its mission centers on promoting happier and healthier consumer lifestyles by providing high-quality cannabis products that are both trusted and loved. The company’s vision lies in being at the forefront of branded cannabis offerings, ensuring adherence to its consumer promise of safety, quality, and efficacy.

Auxly's commitment to responsible growth is reflected in their strategic initiatives, including sustainable product development and expansion into new markets. The effective management of capital, highlighted by their latest loan settlement, empowers Auxly to further invest in innovative products and services that align with evolving consumer needs.

As Auxly looks to the future, the focus will continue to remain on sustainable growth metrics while exploring new avenues for expansion that contribute to the overall resilience and reputation of the brand in the crowded cannabis market. The successful completion of this loan repayment is a vital step in strengthening their operational capabilities and ensuring sustained financial performance, positioning Auxly as a key player moving forward in the industry.

For continuous updates and insights regarding Auxly's operational strategies, consumers and investors alike can visit their website at www.auxly.com and follow them on their social media platforms.

Conclusion

The repayment of the $5 million inventory loan is just one of the many steps Auxly Cannabis Group is undertaking to ensure robust financial health in an ever-evolving market. This proactive approach to managing liabilities while fostering growth illustrates the company's determination to lead within the consumer packaged goods arena in the cannabis sector and responds to the need for companies to maintain flexibility in financial planning.