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Auxly Cannabis Group completed a strategic investment into Kaneh Bosm BioTechnology along with a commercial rights agreement with the company.
Auxly Cannabis Group (TSXV:XLY) completed a strategic investment into Kaneh Bosm BioTechnology (CSE:KBB) along with a commercial rights agreement with the company.
As quoted in the press release:
The Transaction provides Auxly access to a significant and established portfolio of international cannabis licences, assets and distribution networks. As a result of the Transaction, Auxly believes that it has substantially accelerated its entry into numerous international cannabis markets and partnered with an ambitious team focused on future growth.
Kaneh Bosm, through its subsidiaries, has a number of agreements and licences in place related to pharmaceutical distribution, wholesale importation, research and development, cultivation, production, storage, and exportation of cannabis and cannabis derivatives. In particular, Kaneh Bosm has agreements in place to supply a European-based pharmaceutical distributor with a network of 35,000 pharmacies in 16 countries, in addition to working interests in industrial hemp licences in Greece and wholly-owned licences to cultivate, produce, distribute, store, and export cannabis in Colombia, the Kingdom of Lesotho, and Denmark. In addition, Kaneh Bosm is actively pursuing further cannabis licences and related infrastructure in other international jurisdictions where cannabis is legal for medical or non-medical purposes. Kaneh Bosm intends to use the net proceeds from the Investment to begin its growth and development under the strategic alliance with Auxly, as well as for working capital and general corporate purposes.
Pursuant to the terms of the Investment, Auxly has subscribed for $5 [million] of senior unsecured convertible debentures (the “Debentures”) of Kaneh Bosm by way of a non-brokered private placement. The Debentures bear a coupon of 8.00 [percent] and have a maturity date of September 17, 2021. The Debentures can be converted into units (each a “Unit”), at the option of the Company, at a price of C$0.53 per Unit. Each Unit consists of one common share of Kaneh Bosm and one common share purchase warrant exercisable into one common share of Kaneh Bosm at an exercise price of $1.06 for a period of three years.
Click here to read the full press release.
Source: globenewswire.com
