Auxly Cannabis signs $123M investment and research deal with tobacco giant Imperial Brands
Auxly will also get access to Imperial's Nerudia innovation business and become Imperial's exclusive global partner for future cannabis products
TORONTO – Auxly Cannabis Group Inc. of Vancouver will receive a $123-million investment as well as global licences to vaping technology under a research and development partnership with tobacco giant Imperial Brands.
The deal is expected to close in the third quarter, subject to approval from the TSX Venture Exchange.
Under the plan announced from London and Vancouver, the U.K.-based company will invest 75 million pounds in a debenture that’s convertible into Auxly equity at 81 cents per share.
The conversion price is 11 per cent above Auxly’s closing share price at the TSX Venture Exchange on Wednesday.
Imperial will have the right to convert the debt into stock at any time during a three-year period.
In addition to the funds and technology licences, Auxly will get access to Imperial’s Nerudia innovation business and become Imperial’s exclusive global partner for future cannabis products.
In return, the British tobacco firm will designate one out of the five directors on Auxly’s board plus one non-voting observer. It will also have a representative on a new Auxly safety board.
