Always was a beleiver that Imperial Brands would come to rescue for Auxly !! This just proves it !!! They obviously see a future for Auxly....this is great news !! :) Were not going down just yet !!!
IMPERIAL BRANDS PLC EXTENDS $123 MILLION CONVERTIBLE DEBENTURE AND AUXLY IMPLEMENTS BOARD AND MANAGEMENT CHANGES
Wednesday, July 26, 2023, 4:45 PM ET
TORONTO, July 26, 2023 /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 an agreement with its strategic partner, Imperial Brands PLC ("Imperial Brands") to amend certain provisions of its previously issued $123 million debenture (the "Debenture) dated September 25, 2019 as amended on July 6, 2021 (the "Amendment"). Pursuant to the Amendment, Imperial Brands and Auxly have agreed to extend the maturity date of the Debenture by 24 months from September 25, 2024 to September 25, 2026. The parties anticipate the Amendment to come into effect on August 16, 2023.
The Debentures are convertible into Common Shares at a price of $0.81 per share at any time prior to the close of business on the business day immediately preceding maturity. Auxly remains Imperial Brands' exclusive global partner for any future development, manufacture, commercialization, sale and distribution of cannabis products.
In connection with the initial investment by Imperial Brands, the parties entered into an investor rights agreement (the "Investor Rights Agreement") which provides, among other things, that for so long as Imperial Brands holds a partially diluted percentage of outstanding common shares in the capital of Auxly of not less than 15%, it is eligible to nominate one individual designated by Imperial Brands for election as a director to Auxly's Board. As Imperial Brands no longer holds the required percentage under the Investor Rights Agreement, its nominee, Murray McGowan, has resigned from Auxly's Board effective immediately.
"On behalf of myself, and the rest of the Board of Directors, I would like to thank Mr. McGowan for his valuable guidance and support over the past two years." said Hugo Alves, CEO of Auxly. "The extension of the Debenture will further our goal of prudently managing and strengthening our balance sheet and I would like to thank our partners at Imperial Brands for their ongoing commitment to our Company and I look forward to our continued relationship."