Imperial Brands will invest approximately $123 million in Auxly by way of a convertible debenture and grant Auxly global licences to Imperial Brands’ vaping technology and access to its vapor innovation business, Nerudia.
“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.”
Chuck Rifici, Chairman and CEO of Auxly, added: “Following its extensive evaluation of the Canadian cannabis market, we’re thrilled that Imperial Brands selected Auxly as its partner of choice due to the high calibre of our assets, people and capabilities. We are particularly excited to partner with Imperial Brands on current and future intellectual property and product development, starting with immediate access to its portfolio of vaping technologies and research and development capabilities.”
Upon completion of the Transaction, Auxly will:
- Receive an immediate capital injection of approximately $123 million to continue to execute on its strategic objectives and capitalize on emerging growth opportunities;
- Obtain rights to Imperial Brands’ vaping technology and intellectual property for cannabis use globally;
- Be granted access to Imperial Brands’ vapor innovation business, Nerudia, which has a growing team dedicated to cannabis research and a facility that is already licensed for research and development activities with cannabis;
- Become Imperial Brands’ exclusive partner for the future development, manufacture, commercialization, sale and distribution of cannabis products of any kind anywhere in the world; and
- Further strengthen its governance through the addition of one director nominee and one non-voting observer to Auxly’s Board of Directors, each to be designated by Imperial Brands.