Home News Industry News

Auxly Closes C$123 Million Investment, R&D Partnership with Imperial Brands, and Strengthens its Board

Industry News

Auxly Cannabis Group Inc. announced that its transaction (the “Transaction”) with Imperial Brands PLC (“Imperial Brands”) has closed.  As announced on July 25, 2019, Imperial Brands invested C$123 million by way of a debenture pursuant to the Transaction, which is convertible into 19.9% ownership of Auxly. Imperial Brands grants Auxly global licenses to its vaping technology, access to its vapor innovation business, Nerudia, and will use Auxly as its exclusive partner for the future development, manufacture, commercialization, sale and distribution of cannabis products of any kind anywhere in the world.

“We are delighted to announce the closing of this transaction to formally mark the start of our strategic partnership with Imperial Brands,” said Hugo Alves, Chief Executive Officer of Auxly. “We believe there is considerable opportunity for growth and value creation for both companies. We are looking forward to working with the incredibly strong team at Imperial Brands as we prepare to launch our portfolio of branded derivative products, formulated and manufactured at our subsidiary, Dosecann, later this year.  We welcome Imperial Brands' experience and expertise on our Board and on our Safety Committee to help ensure that all of our branded products are produced to Dosecann's exacting standards of quality, safety and efficacy and earn the trust of Canadian consumers."

In connection with the closing of the Transaction, Auxly’s Board has added Conrad Tate as a new director and John Downing as a non-voting observer. They join Auxly’s existing directors: Chuck Rifici; Hugo Alves; Troy Grant; and Genevieve Young.

Conrad Tate, Corporate Development Director, Imperial Brands

Conrad joined Imperial Brands in 1998 having previously worked for a large regional law firm. He has held a number of senior legal and commercial roles in the business and was appointed Corporate Development Director in 2010. Conrad has played a key role in a number of significant transactions over the years, including the acquisition of Altadis, Commonwealth Brands, assets purchased by Imperial as part of the Reynolds American takeover of Lorillard and Nerudia. He has led Imperial Brands’ investigation, analysis and entry into the legal cannabis sector and is currently leading a major divestment program for Imperial Brands, which will realize proceeds of up to £2 billion.

John Downing, Company Secretary, Imperial Brands

John, a qualified solicitor, joined Imperial Brands in 2005 having previously worked for the law firm Linklaters.  He has had a number of senior legal roles in Imperial Brands including playing a leading role in the Altadis acquisition and becoming Head of Group Legal in 2010.  He has considerable experience in managing key corporate projects related to financing, business development and other commercial matters. In addition to his Group Company Secretary role at Imperial Brands, John also has responsibility for the Group’s governance, Code of Conduct, security and information security.

“I’m thrilled to be closing this transaction with Auxly, a dynamic, highly skilled organization that has all the ingredients required for delivering success in the branded derivatives market and beyond,” said Conrad Tate, Corporate Development Director, Imperial Brands. “We’re excited by the opportunities this partnership offers and look forward to working with Auxly to build its business and realize its significant future growth potential.”

Source.

 

Share

 

Other news