+ 4.08
+ 1.41%
+ 4.47
+ 1.51%
+ 5.61
+ 1.57%

Auxly Cannabis Group Receives $123M Investment From Imperial Brands

July 25, 2019 8:55 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

Auxly Cannabis Group Inc. (TSX.V: XLY)(OTC:CBWTF) announced Thursday it will receive $123 million investment by way of a convertible debenture from tobacco giant Imperial Brands PLC (OTC:IMBBY). Imperial Brands will provide Auxly with a global Imperial Brands’ vaping technology and access to its vapor innovation business, Nerudia.

The debenture is convertible into 19.9% ownership of Auxly at a conversion price of 81 cents per share. It has a three-year term with a fixed interest rate of 4% annually.

Imperial Brands gained the option to convert the debenture into Auxly’s shares at any time during the term, after which, if not converted, the debenture will be repayable.

Benzinga's Cannabis Capital Conference heads to Detroit on Aug. 15 — Click here to learn more!

Auxly also agreed to nominate for election to its Board of Directors one of five director nominees and one non-voting observer, both to be chosen by Imperial Brands.

Auxly and Imperial Brands will form a Commerical Cooperation with an equal number of representatives from both companies, which will serve to advance this R&D partnership.

"This investment from Imperial Brands will enhance Auxly’s ability to continue to deliver on our business plans and accelerate our growth initiatives to expand our portfolio of branded derivative products," said Hugo Alves, President of Auxly. "The timing is ideal as we prepare to bring our portfolio of innovative cannabis products to the Canadian market following the legalization of edibles, extracts and topicals later this year."

Related Articles

AgraFlora Secures Agriculture Loan To Support Phase 1 Cultivation Strategy

AgraFlora Organics International Inc. (CSE: AGRA) (PINK: AGFAF) said its joint venture venture with the Houwelings Group — Propagation Services Can read more

Auxly Secures $12M In Financing

Auxly Cannabis Group Inc. (TSXV: XLY) (OTCQX: CBWTF) has secured $12 million in financing. read more

UPDATE: Tilray Says Effectively Agreed To Repurchase A Portion Of Notes At 42% Discount To Face Value

Tilray, Inc. Announces Agreement To Exchange An Additional $72.9M In Principal Amount Of Its 5.00% Convertible Senior Notes Due 2023 For Common Stock

earch, cultivation, production and distribution, today announced that it has entered into privately negotiated exchange agreements with certain holders of its 5.00% Convertible Senior Notes due 2023 (the read more

Australia's Cann Group Ensures $50M Loan To Support Facility Completion

Australian cannabis company Cann Group Limited (ASX: CANN) (PINK: CNGGF) revealed Monday it has obtained credit approval from National Australia Bank (NAB) for its $50 million secured debt facility. read more