UK-based tobacco company Imperial Brands plc, has announced it will be investing C$123 million, or £75 million, in Canadian cannabis company Auxly Cannabis Group Inc.
The 75 million British pounds that imperial will invest is convertible into a 19.9 percent stake in Auxly over a three-year term. This will grant Auxly global licences to Imperial’s vaping technology and access to its brand, Nerudia.
The transaction between the two business is expected to be concluded by the third quarter of 2019, and will build on Imperial’s initial entry into the cannabis market in June 2018, when it bought a stake in Oxford Cannabinoid Technologies (OCT).
“Diversifying our NGP portfolio with this investment provides Imperial with further options for future growth and builds on last year’s investment in Oxford Cannabinoid Technologies,” said Imperial’s Chief Development Officer, Matthew Phillips. RTT News reported that Imperial Brands aims to accelerate the delivery of Auxly’s business plan ahead of regulatory change to the Canadian cannabis market, in October 2019.
Diane Caruana – Vaping Post – August 9, 2019.