AYURCANN REPORTS RECORD SALES GROWTH IN Q3 2025 OF $14,179,974 AND PROVIDES CORPORATE UPDATE

(MENAFN- GlobeNewsWire - Nasdaq) Toronto, Ontario, May 16, 2025 (GLOBE NEWSWIRE) -- Ayurcann Holdings Corp. (CSE: AYUR, OTCQB: AYURF) (“ Ayurcann ” or the“ Company ”) is excited to announce record-breaking financial results for the three months ended March 31, 2025, the highlights of which are included in this news release. As a leading player in the rapidly growing cannabis industry, Ayurcann continues to demonstrate exceptional growth and operational excellence, positioning itself for long-term success. All figures are reported in Canadian dollars. The Company's full set of consolidated financial statements for the three months ended March 31, 2025 and accompanying management's discussion and analysis can be accessed by visiting the Company's website at and its profile page on SEDAR+ at .

Financial Highlights for the Three Months ending March 31, 2025: Executing with Consistency

• Revenue Growth: Ayurcann generated $14,179,974 in gross revenue for Q3 2025, representing a 22% year-over-year increase (vs. $11,655,360 in Q3 2024). This continued growth reflects robust demand across our expanding product categories and successful national distribution efforts.

• Profitability: Ayurcann achieved positive adjusted EBITDA ¹ of $766,742 at the operating subsidiary level and $342,634 on a consolidated basis , with a healthy gross margin of 38% , reinforcing our disciplined focus on cost control and sustainable profitability.

• Market Share Leadership: Ayurcann is now recognized as a Top 3 vape producer in Ontario by volume , with a 5% share of the national vape market and 8% share in Ontario , underscoring our position in one of Canada's fastest-growing categories.2

Why Ayurcann – Why Now

• Top-Tier Operator: With a strong market share, growing brand recognition, and a proven track record of execution, Ayurcann has established itself as one of Canada's most efficient and scalable cannabis producers.

• Diversified Product Portfolio: Over the last six months, we launched 25 new SKUs across vapes, pre-rolls, and concentrates. These new listings are helping us penetrate additional retail shelves and serve a broader base of cannabis consumers nationwide.

Positioned for Sustainable Growth

• Category Expansion: With leadership in the vape segment, Ayurcann is actively scaling its pre-rolls and concentrates , tapping into two growing consumer segments in the cannabis market.

• Operational Efficiency: Our lean, high-throughput manufacturing model enables us to maintain strong gross margins and positive cash flow even in a competitive pricing environment.

• National Footprint: Ayurcann's products are now available across the country, and we continue to grow our presence, positioning ourselves as a reliable national supplier to retailers.

Why Ayurcann is Poised for Growth

Ayurcann is leveraging a forward-looking approach to product development, operational efficiency, and brand expansion.

Proven Profitability & Market Strength:

Ayurcann's consistent gross margins and disciplined cost structure provide a strong foundation for sustainable profitability and future shareholder value. Despite ongoing industry headwinds, we delivered revenue growth , and our momentum continues to build across key product categories.

Expanding National Footprint:

Beyond our strong performance in core markets, Ayurcann is actively expanding into additional provinces and retail channels across Canada. Our growing geographic reach, combined with a robust product pipeline, is expected to drive continued revenue growth in the quarters ahead.

Corporate Update

In addition, Ayurcann announces that effective May 15, 2025, Allison Gordon has resigned as a director of the Company. The Company thanks Allison for her service as a member of the board of directors.

1

Earnings before interest, taxes, depreciation, and amortization (“ EBITDA ”) and adjusted EBITDA. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards (“ IFR S”) and are, therefore, unlikely to be comparable to similar measures presented by other issuers. Non-IFRS measures provide investors with a supplemental measure of the Company's operating performance and, therefore, highlight trends in the Company's core business that may not otherwise be apparent when relying solely on IFRS measures. Management uses non-IFRS measures in measuring the financial performance of the Company.

2

Based on reporting by Hifyre IQTM, as of March 31, 2025.

For further information, please contact:

Igal Sudman, Chief Executive Officer
Ayurcann Holdings Corp.
Tel: 905-492-3322
Email: ...

Investor Relations:
Email: ...

About Ayurcann:
Ayurcann is a leading cannabis licenced producer concentrating on the recreational market in Canada with proprietary products and formulations including Vape Carts, Pre-rolls, Concentrates and Extracts.

For more information about Ayurcann, please visit and its profile page on SEDAR+ at .

Cautionary Note Regarding Forward-Looking Statements

This press release contains“forward-looking statements” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as“plans”,“strategy”,“expects” or“does not expect”,“intends”,“continues”,“anticipates” or“does not anticipate”, or“believes”, or variations of such words and phrases or may contain statements that certain actions, events or results“will be taken”,“will launch” or“will be launching”,“will include”,“will allow”,“will be made”“will continue”,“will occur” or“will be achieved”. The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the Company meeting its goals and strategic focuses as set out herein; the Company continuing to grow, expand and capitalize on its revenue, sales and growth trajectory; the future growth of the cannabis industry; the Company being well-positioned for long-term growth, profitability, success and providing shareholder returns; and the Company continuing to be a leading player in the cannabis industry.

Forward-looking information in this news release are based on certain assumptions and expected future events, namely: the Company will focus on custom processes and pharma grade products for the adult use and medical cannabis industry in Canada; the Company will have the ability to meet its goals and strategic focuses as set out herein; the Company will have the ability to continue to grow, expand and capitalize on its revenue, sales and growth trajectory; cannabis industry will continue to grow; the Company's will continue to have long-term growth, profitability, success and provide shareholder returns; and the Company will continue to be a leading player in the cannabis industry.

These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the Company's inability to meet its goals and strategic focuses as set out herein; the Company's inability to continue to grow and capitalize on its revenue and growth trajectory; the Company inability to continue to grow, expand and/or capitalize on its revenue, sales and/or growth trajectory; growth of the cannabis industry declining and/or plateauing; Company growth, profitability and/or shareholder returns declining and/or plateauing; and the Company not being a leading player in the cannabis industry.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions, or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. Although the Company believes that the expectations reflected in these statements are reasonable, such statements are based on expectations, factors, and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including but not limited to the risk factors discussed under the heading“Risk Factors” in the Company's public disclosure, and elsewhere in this press release, as such factors may be further updated from time to time in our periodic filings, available at , which factors are incorporated herein by reference. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events, or results, or otherwise, or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

Neither the Canadian Securities Exchange nor its Regulation Services Provider have reviewed or accept responsibility for the adequacy or accuracy of this release.

MENAFN16052025004107003653ID1109558130