Auxly Cannabis signs $123M investment and research deal with tobacco giant Imperial Brands

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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.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.

 

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