Aura Health Inc. (the “Company” or “Aura”) (CSE:BUZZ) is very pleased to announce it has entered into a binding letter of intent (“LOI”) to subscribe to an unsecured convertible note (“Convertible Note”) in Holycanna Ltd. (“Holycanna”), an Israel-based company with an cultivation and sales license application (“License Application”) submitted to the Israeli Ministry of Health (“Yakar”). Upon approval of the License Application, the Company’s Convertible Note will automatically convert to a majority (54%) equity stake in Holycanna.
Terms of the LOI are as follows (all figures in CAD$, converted at today’s NIS/CAD spot rate):
- The Company will provide Holycanna with a bridge loan (“Bridge Loan”) in the principal amount of $356,606. The Bridge Loan will be non-interest-bearing debt due on November 1st, 2018, upon which the Bridge Loan will be cancelled and converted to principal within the Convertible Note investment;
- On November 1st, the Company will subscribe for the Convertible Note in the maximum principal amount of $3,566,060, which will be advanced in tranches, on the following timetable:
- $713,212 – by November 1st, 2018;
- $1,248,121 – by January 1st, 2019;
- The remaining sum ($1,248,121) will be advanced by the Company upon request made by Holycanna;
- The Convertible Note will be converted into equity automatically upon License Application approval.
Daniel Cohen, CEO of Aura, commented, “We are excited to announce this transformational acquisition and look forward to developing our international expansion further. The Israel market provides significant opportunity for value creation both within the country and through future potential export opportunities. As a company, we seek acquire and develop differentiated, value-added cannabis businesses and we believe Holycanna fits very well within this strategy.”
About Aura Health Inc.
Aura, through its wholly-owned Delaware subsidiary, Green Global Properties Inc. (“Green Global”), owns a 30% interest in four medical marijuana clinics in Las Vegas, Nevada; Mesa, Arizona; Tucson, Arizona and Hollywood, Florida, respectively. Green Global has an option to increase its interest in each such clinic (other than the Nevada clinic) to 51%.
For further information, please contact:
Daniel Cohen, CEO
Aura Health Inc.
David Posner, Director and Chairman
Aura Health Inc.
Caution Regarding Forward-Looking Information:
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