Auxly Welcomes $123 Million Investment and R&D Partnership with Imperial Brands

Auxly 欢迎与帝国品牌的1.23亿美元投资和研发合作

2019-07-25 23:41:10 CFN Media Group


Imperial Brands to invest approximately $123 million by way of a debenture convertible into 19.9% ownership of Auxly at a conversion price of $0.81 per share Auxly granted global licences to Imperial Brands’ vaping technology and intellectual property and access to its vapor innovation business, Nerudia Auxly to become Imperial Brands’ exclusive partner for cannabis-related initiatives Jointly establish a Commercial Cooperation Group to foster collaboration between the parties Ideally timed to benefit from the legalization of cannabis derivative products in Canada later this year VANCOUVER, British Columbia, July 25, 2019 (GLOBE NEWSWIRE) — Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF) (“Auxly”), an international cannabis company, today announced that Imperial Brands PLC (“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 (the “Transaction”). “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.” Imperial Brands is an international fast-moving consumer goods company that continually evolves to embrace changing market dynamics and develop new consumer experiences. Its Next Generation Products prioritizes the fast-growing vapor segment with innovative products and proprietary technologies, including its pioneering brand, blu. Strategic Rationale This collaborative partnership accelerates the delivery of Auxly’s business plan ahead of significant regulatory change to the Canadian cannabis market, as Auxly continues to focus on the development of science-backed, innovative, branded derivative products. As part of the Transaction, Imperial Brands will grant Auxly global licences to its vaping technology for cannabis use and access to its vapor innovation business, Nerudia. The shared ability to rapidly innovate as the Canadian market evolves is key to future growth and Auxly will work closely with a small dedicated team from Nerudia in developing a portfolio of new and enhanced vapor products and brands. 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’ industry-leading 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. Transaction Structure Imperial Brands and Auxly have entered into a subscription agreement pursuant to which Imperial Brands has agreed to invest approximately $123 million by way of a debenture convertible into 19.9% ownership of Auxly at a conversion price of $0.81 per share, representing an 11% premium to Auxly’s closing share price on July 24, 2019 and a 12% premium to the trailing 10-day volume-weighted average price on the TSX Venture Exchange. The convertible debenture has a three-year term and a fixed interest rate of 4.00% per annum, payable on the last day of December. Imperial Brands will have the right to convert the debenture into Auxly shares at any time during the three-year term and has certain top-up and pre-emptive rights to maintain its pro rata ownership in Auxly and certain governance rights. If at the end of the term Imperial Brands has not converted, the debenture will be repayable in full. As part of the Transaction, Auxly agrees to nominate for election to its Board of Directors one out of five director nominees and one non-voting observer, each to be designated by Imperial Brands. In addition, the Chair of Imperial Brands’ Product Stewardship and Health Group will sit on Auxly’s new Safety Board, which will have oversight of the controls in place to ensure the safety, efficacy and quality of Auxly’s products. Upon the closing of the Transaction, Auxly and Imperial Brands will establish a Commercial Cooperation Group (the “CCG”), which will foster collaboration between the parties to enable them to leverage their respective capabilities and expertise for the benefit of growing Auxly’s business. Each company will appoint four representatives to the eight-member CCG. The Transaction is expected to close in the third quarter of 2019, subject to receipt of certain closing conditions and approval by the TSX Venture Exchange. BMO Capital Markets is acting as Auxly’s financial advisor in connection with the Transaction. ON BEHALF OF THE BOARD “Chuck Rifici” Chairman & CEO About Auxly Cannabis Group Inc. (TSX.V: XLY) Auxly is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, wellness and adult-use markets. Auxly’s experienced team of industry first-movers and enterprising visionaries has secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities, and leading product research and development infrastructure in order to create trusted products and brands in an expanding global market. Learn more at and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/. Investor Relations: For further information, please contact our Investor Relations Team: Email: [email protected] Phone: 1.833.695.2414 Media Enquiries (only):  For media enquiries or to set up an interview, please contact: Sarah Bain, VP External Affairs Email: [email protected] Phone: 613.230.5869 Forward-Looking Statements This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: the timing and completion of the proposed Transaction, obtaining the necessary regulatory approval of the proposed Transaction, anticipated use of proceeds, the impact of the Transaction on Auxly’s market position, Auxly’s execution of its innovative product development, commercialization strategy and expansion plans, the anticipated benefits of the Transaction and the strategic relationship with Imperial Brands including without limitation, Auxly’s ability to develop and commercialize high-margin and value-added cannabis products and brands in Canada and globally, future legislative and regulatory developments involving cannabis and cannabis products, political change in Canada and globally, competition and other risks affecting Auxly in particular and the cannabis industry generally. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this release including, but not limited to: whether Auxly and Imperial Brands can complete the Transaction on the anticipated terms and timeline; the ability to satisfy various conditions to the closing of the Transaction contemplated by the subscription agreement; the ability to obtain regulatory approval of the Transaction on the proposed terms and timeline; any conditions imposed on the parties in connection with consummation of the Transaction; the risk that synergies and expected collaboration from the Transaction may not be fully realized or may take longer to realize than expected; future revenue expectations; consumer demand for cannabis products in Canada and globally; the expected benefits of the Transaction may not materialize in the manner or timeframe expected, or at all; Auxly’s subsidiaries and partners are able to obtain and maintain the necessary regulatory authorizations to conduct business; and general economic, financial market, legislative, regulatory, competitive and political conditions in which Auxly and its subsidiaries and partners operate will remain the same. Additional risk factors are disclosed in the revised annual information form of Auxly for the financial year ended December 31, 2017 dated May 24, 2018. New factors emerge from time to time, and it is not possible for management to predict all of those factors or to assess in advance the impact of each such factor on Auxly’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The forward-looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward-looking information speaks only to such assumptions as of the date of this release. In addition, this release may contain forward-looking information attributed to third party industry sources, the accuracy of which has not been verified by Auxly. Readers should not place undue reliance on forward-looking information contained in this release. The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, Auxly does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Required Early Warning Report Disclosure Auxly’s head office is located at 1055 West Hastings Street, Suite 2200, Vancouver, BC V6E 2E9.  Imperial Brand’s head office is located at 121 Winterstoke Road, Bristol, UK BS3 2LL. An affiliate of Imperial Brands will acquire the convertible debenture and assuming the convertible debenture is exercised in full on the closing of the Transaction, it is expected that Imperial Brands and its affiliates would have beneficial ownership of 151,668,018 common shares of Auxly (approximately 19.99% of the issued and outstanding common shares calculated on a non-diluted basis). Imperial Brands entered into the subscription agreement as part of a strategic investment in Auxly. Imperial Brands intends to review its investment in the Corporation on a continuing basis and may, subject to the terms of the Transaction agreements, purchase or sell common shares, either on the open market or in private transactions, or exercise the convertible debenture in the future, in each case, depending on a number of factors, including general market and economic conditions and other factors and conditions Imperial Brands deems appropriate. An early warning report will be filed by Imperial Brands with applicable Canadian securities regulatory authorities. To obtain a copy of the early warning report, please contact Daniel Glavin at 416-869-5500. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Imperial Brands 将通过可转换为19.9% Auxly 所有权的债券投资约1.23亿美元,转换价格为每股0.81美元 Auxly 授予 Imperial Brands 的 vaping 技术和知识产权全球许可,并获得其蒸汽创新业务 Nerudia 的使用权 Auxly 将成为 Imperial Brands 在大麻相关计划方面的独家合作伙伴 共同成立商业合作小组,促进双方的合作 理想的时机是在今年晚些时候从加拿大大麻衍生产品合法化中获益 不列颠哥伦比亚 VANCOUVER ,2019年7月25日( GLOBE NEWSWIRE )— Auxly Cannabis Group Inc .( TSX.V : XLY )( OTCQX : CBWTF )(" Auxly "),一家国际大麻公司,今天宣布, Imperial Brands PLC (“ Imperial Brands ”)将通过可转换债券向 Auxly 投资约1.23亿美元,并向 Imperial Brands 的 vaping 技术和蒸汽创新业务 Nerudia 授予 Auxly 全球许可证(“交易”)。 Auxly 总裁雨果•阿尔维斯( Hugo Alves )表示:“来自 Imperial Brands 的投资将增强 Auxly 继续实现业务计划的能力,并加快我们的增长举措,以扩大我们的品牌衍生产品组合。”“这个时机是理想的,因为在今年晚些时候食品、提取物和外用合法化后,我们准备将我们创新的大麻产品组合带到加拿大市场。” Auxly 董事长兼首席执行官查克•里菲奇( Chuck Rififii )补充道:“在对加拿大大麻市场进行广泛评估后,我们很高兴帝国品牌选择 Auxly 作为其首选合作伙伴,因为我们的资产、人员和能力都非常出色。我们特别兴奋地与帝国品牌合作,在当前和未来的知识产权和产品开发方面进行合作,首先是立即获得其拥有的技术和研发能力。” 帝国品牌是一家国际快速消费品公司,不断发展,以适应不断变化的市场动态和发展新的消费者体验。它的下一代产品以创新的产品和专有技术,包括其先锋品牌 blu ,优先发展快速增长的蒸汽领域。 战略原则 在加拿大大麻市场发生重大监管变化之前,这一合作伙伴关系加快了 Auxly 业务计划的交付,因为 Auxly 继续专注于开发科学支持、创新的品牌衍生产品。作为交易的一部分, Imperial Brands 将授予 Auxly 用于大麻使用和获取其蒸汽创新业务 Nerudia 的 vaping 技术的全球许可证。随着加拿大市场的发展,共享的快速创新能力是未来增长的关键, Auxly 将与 Nerudia 的一个小型专业团队密切合作,开发新的和增强的蒸汽产品和品牌组合。 交易完成后, Auxly 将: 立即获得约1.23亿美元的注资,以继续执行其战略目标并利用新出现的增长机会; 获得 Imperial Brands 在全球大麻使用领域的行业领先技术和知识产权; 获准进入 Imperial Brands 的蒸汽创新业务 Nerudia ,该公司拥有一支不断壮大的团队,致力于大麻研究,并拥有一家已获得大麻研发活动许可的设施; 成为 Imperial Brands 未来在世界任何地方开发、制造、商业化、销售和分销大麻产品的独家合作伙伴;以及 通过在 Auxly 董事会中增加一名董事提名人和一名无投票权观察员,进一步加强其治理,每个人由帝国品牌公司指定。 交易结构 Imperial Brands 与 Auxly 已签订认购协议,根据该协议, Imperial Brands 已同意以可转换为 Auxly 19.9%股权的债券方式投资约1.23亿美元,转换价格为每股0.81美元,较 Auxly 7月24日收盘价溢价11%。与 TSX 风险交易所的10天成交量加权平均价格相比,2019年有12%的溢价。可转换公司债券的期限为三年,固定年利率为4.00%,于12月最后一日支付。帝国品牌将有权在三年期限内的任何时候将债券转换成 Auxly 股份,并拥有一定的补足和优先购买权,以维持其在 Auxly 的比例所有权和某些治理权利。如果在期末帝国品牌尚未转换,债券将全额偿还。 作为交易的一部分, Auxly 同意提名其董事会成员,每五名董事候选人中就有一名为董事候选人,另有一名为无投票权观察员,均由帝国品牌指定。此外,帝国品牌产品管理和健康集团主席将在 Auxly 新成立的安全委员会任职,该委员会将对现有的控制措施进行监督,以确保 Auxly 产品的安全性、有效性和质量。 交易完成后, Auxly 和 Imperial Brands 将成立商业合作集团(“ CCG ”),该集团将促进双方之间的合作,使双方能够利用各自的能力和专业知识,为 Auxly 业务的增长带来利益。每个公司将任命四名代表的八名成员的 CCG 。 预期交易将于二零一九年第三季度完成,惟须待收到若干关闭条件及 TSX 风险交易所批准。 BMO Capital Markets 担任 Auxly 与本次交易有关的财务顾问。 论董事会的职责 “ Chuck Rifici ”董事长兼首席执行官 关于 Auxly Cannabis Group Inc .( TSX.V : XLY ) Auxly 是一家国际大麻公司,致力于为医疗、健康和成人使用市场带来创新、有效和高质量的大麻产品。Auxly 拥有经验丰富的行业先驱者和企业远见者团队,确保了原料大麻的多样化供应,强大的临床、科学和运营能力,以及领先的产品研发基础设施,以在不断扩大的全球市场中创造值得信赖的产品和品牌。 了解更多信息,请访问 ,并在 Twitter :@ AuxlyGroup ; Instagram :@ auxlygroup ; Facebook :@ auxlygroup ; LinkedIn : company / auxlygroup /。 投资者关系: 如需进一步信息,请联系我们的投资者关系团队: 电子邮件:[受电子邮件保护] 电话:##15.22##9##414 传媒查询(只提供): 传媒查询或安排面试,请联络: Sarah Bain ,外部事务副总裁 电子邮件:[受电子邮件保护] 电话:613.230.5869 前瞻性陈述 本新闻稿包含适用加拿大证券法含义内的某些“前瞻性信息”。前瞻性信息通常以“计划”、“持续”、“预期”、“项目”、“意向”、“相信”、“预期”、“估计”、“可能”、“会”、“潜在”、“建议”等类似词语或某些事件或条件“可能”或“将”发生的信息为特征。这些信息只是一个预测。在整个新闻稿中,在得出结论或作出前瞻性信息所载预测时使用了各种假设。前瞻性信息包括但不限于:提议交易的时间和完成、获得提议交易的必要监管批准、预期收益的使用、交易对 Auxly 市场地位的影响、 Auxly 执行其创新产品开发、商业化战略和扩张计划、交易的预期收益以及与帝国品牌的战略关系,包括但不限于 Auxly 在加拿大和全球开发和商业化高利润率和增值大麻产品和品牌的能力、涉及大麻和大麻产品的未来立法和监管发展;加拿大和全球的政治变化、竞争和其他影响特别是欧克斯利和大麻工业的风险。 若干因素可能导致实际结果与本新闻稿中前瞻性信息中的结论、预测或预测存在重大差异,包括但不限于: Auxly 和 Imperial Brands 是否能够按照预期的条款和时间表完成交易;满足认购协议预期的交易结束的各种条件的能力;根据提议的条款和时间表获得交易监管批准的能力;与完成交易有关的各方施加的任何条件;交易的协同效应和预期协作可能无法完全实现或可能需要比预期更长时间才能实现的风险;未来的收入预期;加拿大和全球对大麻产品的消费者需求;交易的预期利益可能不会以预期的方式或时间框架实现; Auxly 的子公司和监管合作伙伴将保持相同的法律、市场和监管条件。额外风险因素于 Auxly 日期为2018年5月24日之截至2017年12月31日止财政年度之经修订年度资料表格中披露。 新因素不时出现,管理层无法预测所有这些因素,也无法提前评估每个此类因素对 Auxly 业务的影响,或任何因素或因素组合可能导致实际结果与任何前瞻性信息中包含的结果存在重大差异的程度。本新闻稿中的前瞻性信息是基于目前可获得的信息以及管理层认为合理的假设。前瞻性信息仅说明截至本新闻稿发布之日的此类假设。此外,本发行版可能包含归属于第三方行业来源的前瞻性信息,其准确性未经 Auxly 验证。读者不应过分依赖本新闻稿中的前瞻性信息。 本新闻稿中包含的前瞻性信息明确符合上述警告声明,并在本新闻稿发布之日作出。除适用的证券法可能要求的情况外, Auxly 不承担任何义务公开更新或修订任何前瞻性信息,以反映本发行日期后的事件或情况,或反映因新信息、未来事件或结果而发生的意外事件。或以其他方式。 所需的预警报告披露 Auxly 的总部位于温哥华西黑斯廷斯街1055号,邮编:2200。帝国品牌的总部位于英国布里斯托尔 Winterstoke 路121号。 帝国品牌的附属公司将收购可转换债券,并假设可转换债券在交易结束时全部行使。预计 Imperial Brands 及其附属公司将拥有 Auxly 151,668,018股普通股的实益所有权(按未稀释基础计算,约占已发行和未发行普通股的19.99%)。 作为对 Auxly 战略投资的一部分,帝国品牌签署了认购协议。帝国品牌有意持续审查其在该公司的投资,并可根据交易协议的条款,在公开市场或私人交易中购买或出售普通股,或在未来行使可转换债券,视多种因素而定,包括一般市场和经济条件以及帝国品牌认为适当的其他因素和条件。 Imperial Brands 将向适用的加拿大证券监管机构提交预警报告。如欲获取预警报告副本,请致电416-869-5500与 Daniel Glavin 联系。 TSX 风险交易所及其监管服务提供商(定义见 TSX 风险交易所的政策)均不对本新闻稿的充分性或准确性承担责任。