Imperial Brands is now the largest shareholder in Auxly !! Also converted at .81 per share for $150 Million plus shares !!! If that does not say screaming buy at .05 I dont know what is...LOL :)
-- Imperial Brands plc converts over $123 million in total debt to shares resulting in 19.8% ownership
TORONTO, April 1, 2024 /CNW/ -
Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) ("Auxly" or the "Company") a leading consumer packaged goods company in the cannabis products market, is pleased to announce the completion of the conversion of $123.4 million of principal and accrued interest under the 4.00% unsecured convertible debenture of the Company due September 25, 2026 (the "Debenture") and the amendment to the amended and restated investor rights agreement dated July 6, 2021 (the "Investor Rights Agreement") with 1213509 B.C. Ltd., a wholly-owned subsidiary of Imperial Brands plc ("Imperial"), pursuant to the terms previously announced on March 25, 2024.
Imperial has converted (the "Conversion") (i)
$121.9 million of the principal amount outstanding under the Debenture at an exercise price of .81 for 150,433,450 common shares in the capital of the Company ("Shares"), and (ii) $1.56 million of accrued interest under the Debenture into 90,882,667 Shares at a price of .017 (the "Interest Conversion Price"),
resulting in Imperial holding an equity position in the Company of approximately 19.8%. Imperial and Auxly entered into a second amended and restated Investor Rights Agreement dated March 28, 2024 (the "A&R Investor Rights Agreement") to, among other things, remove the existing requirement that Imperial will use the Company as its exclusive cannabis partner.
"We appreciate the continued support of our strategic partner
Imperial who we now also welcome as our largest shareholder", said Hugo Alves, CEO Auxly. "
The conversion improves the financial position of the Company by eliminating $123 million in debt and is expected to reduce our proforma 2024 annual interest and accretion expense by approximately $14 million. This is fantastic news for Auxly; we will continue to look for ways to strengthen our balance sheet and remain focused on delivering profitable growth with quality products and incredible teamwork."