TORONTO, Dec. 17, 2019 (GLOBE NEWSWIRE) -- Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF) (“Auxly” or the “Company”) today announced that Imperial Brands PLC (“Imperial Brands”) has exercised its pre-emptive right to subscribe for an aggregate amount of 6,315,574 common shares (the “Purchased Shares”) of Auxly for $5,207,110.94. By subscribing for the Purchased Shares, Imperial Brands shows its continued support in Auxly by maintaining its 19.9% ownership of the Company, following its initial investment of $123 million by way of convertible debentures in a transaction announced July 25, 2019.
Imperial Brands has subscribed for the Purchased Shares to maintain its pro rata ownership in Auxly as follows: i) 914,960 common shares at a subscription price of $0.91 per share; and ii) 5,400,614 common shares at a subscription price of $0.81 per share, issuable to Imperial Brands; for the issuance of shares to non-executive employees and for the remaining 6% unsecured convertible debentures.
“We are delighted that Imperial Brands continues to support our vision of being a global leader in branded cannabis products,” said Hugo Alves, CEO of Auxly. “The strength of our strategic partnership lies in our mutual excitement and desire to work together and build something special. We are already working together on vapor innovation; consumer safety governance and corporate development initiatives and believe that we are benefiting tremendously as a company. This further investment by Imperial is another strong showing of their belief in Auxly's people, assets and capabilities and our ability to establish Auxly as a leader in the 2.0 market and beyond."
ON BEHALF OF THE BOARD
"Hugo Alves" CEO
About Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF)
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 www.auxly.com and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.
Investor Relations:
For investor enquiries please contact our Investor Relations Team:
Email: IR@auxly.com
Phone: 1.833.695.2414
Media Enquiries (only):
For media enquiries or to set up an interview please contact:
Email: press@auxly.com
Notice Regarding Forward Looking Information
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 successful production and launch of the Company's derivative cannabis products; political change, future legislative and regulatory developments involving cannabis and cannabis products; and competition and other risks affecting the Company 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 included in this release. 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. 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, the Company 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.
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.
