Proactiveinvestors USA & Canada Auxly Cannabis Group Inc https://ca.proactiveinvestors.com Proactiveinvestors USA & Canada Auxly Cannabis Group Inc RSS feed en Mon, 25 Mar 2019 03:53:37 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Auxly Cannabis closes US$15M purchase of Uruguay company to boost global access ]]> https://ca.proactiveinvestors.com/companies/news/212251/auxly-cannabis-closes-us15m-purchase-of-uruguay-company-to-boost-global-access-212251.html Auxly Cannabis Group Inc (CVE:XLY) (OTCMKTS:CBWTF) said Wednesday that it has completed its US$15 million acquisition of an 80% stake in Inverell SA.

Vancouver-based Auxly said in a press release that the purchase of the Montevideo, Uruguay-based company enhances its role as an international distributor of cannabinoids. Auxly added that its partnership with ICC International Cannabis Corp (CSE:WRLD) (OTCMKTS:KNHBF) gives it access to 16 markets through a network of 35,000 pharmacies.

READ: Auxly Cannabis shares rocket as it advances $4m to Lotus Ventures to complete growing facility

“The low-cost and high-volume access to cannabidiol molecules, through our ownership in Inverell, positions Auxly to be a leader in the global value-added cannabinoid-based product markets,” Auxly President and Director Hugo Alves said in a statement.

He added that Inverell exceeded its 2018 planting target of 150 hectares (370 acres) of hemp plants and has made progress in developing its extraction facility.

Under the deal, Auxly paid US$2 million in cash, US$3.56 million through the issuance of 1.9 million common shares at C$2.28 a share and U$9.4 million through the issuance of 5.1 million shares to be held in escrow pending the achievement of certain milestones.

Those milestones include the registration of Inverell’s cannabis genetics and the export of cannabidiol products.

Shares of Auxly rose US$0.03, or 3.7%, to US$0.66 in after-hours OTC Markets trading. They fetched C$0.88 in Canada on Tuesday.

Contact Dennis Fitzgerald at dennis@proactiveinvestors.com

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Wed, 09 Jan 2019 09:29:00 -0500 https://ca.proactiveinvestors.com/companies/news/212251/auxly-cannabis-closes-us15m-purchase-of-uruguay-company-to-boost-global-access-212251.html
<![CDATA[News - Auxly Cannabis Group bags licensed cannabis operator in Uruguay with Inverell acquisition ]]> https://ca.proactiveinvestors.com/companies/news/208335/auxly-cannabis-group-bags-licensed-cannabis-operator-in-uruguay-with-inverell-acquisition-208335.html Auxly Cannabis Group Inc (CVE:XLY, OTCQX:CBWTF) revealed that it had formally closed the previously announced Inverell S.A. acquisition.

Inverell is a federally licensed cannabis operator based in Montevideo, Uruguay led by scientist Dr Raúl Urbina. The firm has now received the green light from the government body SENACLAFT, which oversees foreign direct investments into the South American country for the acquisition of 80% of Inverell, it said.

READ: Auxly Cannabis shares rocket as it advances $4mln to Lotus Ventures to complete growing facility

The latter is a large-scale outdoor producer of hemp plants for CBD extraction operating on an initial footprint of around 300 hectares.

It has recently started the planting of feminized seeds on 150 hectares (around 16.1 million square feet) which it expects to complete by early December and harvest in mid-April of 2019.

Auxly's ownership of Inverell gives it a cornerstone asset through which to effectively exploit emerging international distribution channels, including through Auxly's strategic partnership with ICC International Cannabis Corporation Inc (CSE: WRLD) which provides gives access to 16 markets through a network of 35,000 pharmacies.

Auxly has also applied for a permit to import proprietary cannabis genetics from Inverell to use in its Canadian operations.

Upon receipt of the permit, the firm will be able to import proprietary high CBD yielding genetics from Uruguay created through the breeding program at Inverell.

“I couldn't be more excited to announce the closing of the Inverell transaction," said  Hugo Alves, the president of Auxly.

"Not only is Auxly acquiring an incredible project, but we are welcoming one of the world's foremost experts in large-scale outdoor cultivation and the extraction of high value molecules from plants into the Auxly family."

He added: "Through Inverell, Auxly is perfectly poised to play a leading role in the global CBD economy and establish itself as a leading manufacturer of value-added cannabinoid-based products for domestic and international markets.

"Our ability to exercise strict QA/QC controls along every point of the supply chain from cultivation to extraction to product manufacturing, all within jurisdictions where cannabis is federally legal, ensures that we will be able to meet the quality assurance and supply chain demands of increasingly sophisticated and institutional purchasers."

Terms of the transaction include the payment by Auxly of US$2 million in cash on the date of closing, and US$$3,562,500 which will be paid from issuing over 1.56 million shares at C$2.28 on closing.

In connection with the deal, Auxly has agreed to extend to Inverell up to a further US$5 million via a secured loan repayable through cash flows generated by Inverell’s cultivation operations.

Shares added 1.08% to $0.94 each.

Reporting by Giles Gwinnett

giles@proactiveinvestors.com

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Thu, 01 Nov 2018 09:14:00 -0400 https://ca.proactiveinvestors.com/companies/news/208335/auxly-cannabis-group-bags-licensed-cannabis-operator-in-uruguay-with-inverell-acquisition-208335.html
<![CDATA[News - Auxly Cannabis shares rocket as it advances $4mln to Lotus Ventures to complete growing facility ]]> https://ca.proactiveinvestors.com/companies/news/204668/auxly-cannabis-shares-rocket-as-it-advances-4mln-to-lotus-ventures-to-complete-growing-facility-204668.html Shares of Auxly Cannabis Group Inc (CVE:XLY, OTCQX:CBWTF) and Lotus Ventures Inc (CSE:J) soared on Tuesday after it announced it had finalized an additional investment by Auxly of C$4mln to help fund Lotus’ 22,500 sq/ft facility in Armstrong, British Columbia. The company announced it had signed a definitive long-term purchase and sale agreement. 

Shares of Vancouver-based Auxly jumped 17.2% at US$1.02 in New York and 13.8% at C$1.32 in Toronto.

Shares of Lotus were up 16% at C$0.29. 

"Lotus is a partner that we value deeply, having been part of the original cohort of streaming partners at the inception of Auxly. We are incredibly pleased to be making this subsequent investment into Lotus to complete the buildout of the first phase of their current facility in Armstrong, British Columbia. We continue to look forward to working closely with Lotus’ team to design and build out additional phases of this asset," said Hugo Alves, president of Auxly.

READ: CryptoCann™ Report: ICO funding reaches lowest level in 16 months; Jimmy Buffett licenses Coral Reefer brand

In addition to the C$4mln advanced to Lotus to partially finance the completion of the facility, Auxly also made a C$1mln subscription of common shares of Lotus, which was completed in January 2018.

Lotus is a late stage applicant pursuant to the Access to Cannabis for Medical Purposes Regulations. The company says the facility should be completed by the end of September 2018.

In the latest deal, Auxly was issued an additional 3,755,868 common shares of Lotus and will be entitled to purchase or otherwise direct the sale of 50% of the facility's total production which is expected to be 2,000kg of cannabis each year.

Auxly will have the right of first offer to purchase the remaining 50% of cultivation output as well as a right of first refusal to finance a prescribed portion of the first expansion to the facility and all or a portion of any further expansions. 

“Auxly is emerging as a large player in the distribution and marketing of cannabis in Canada. Lotus Ventures benefits in several ways from the Auxly streaming relationship, in addition to access to equity, the relationship provides us with assured offtake of at least half of our production as well as access to their market and industry expertise," said Dale McClanaghan, president and chief executive officer of Lotus.

"This will enable Lotus to grow more rapidly than it otherwise would while working towards establishing a reputation as a top-tier Licensed Producer."

When Lotus receives its cultivation license at the facility, Auxly can designate one nominee to Lotus' board of directors for as long as Auxly holds at least 25% of the purchased Lotus shares. 

The purchased Lotus shares have a statutory hold period of four months and one day.

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Tue, 11 Sep 2018 13:26:00 -0400 https://ca.proactiveinvestors.com/companies/news/204668/auxly-cannabis-shares-rocket-as-it-advances-4mln-to-lotus-ventures-to-complete-growing-facility-204668.html
<![CDATA[News - Auxly Cannabis acquires cannabis-focused Canadian research group KGK Science ]]> https://ca.proactiveinvestors.com/companies/news/203338/auxly-cannabis-acquires-cannabis-focused-canadian-research-group-kgk-science-203338.html Auxly Cannabis Group Inc (TSX-V:XLY) said on Tuesday it forged a share purchase agreement with KGK Science Inc to acquire all of its shares for US$12.3mln.

KGK is a leading health and wellness-focused private contract research organization based in London, Ontario. The company expects to leverage KGK’s expertise and research abilities to boost its product development efforts through collaboration with Auxly's wholly owned subsidiary, Dosecann Inc. 

For nearly two decades, KGK has served many of North America’s leading nutraceutical, natural health product and consumer packaged goods companies such as Kraft Foods, Sanofi, Nature’s Bounty, and NuSkin.

KGK works with their clients in substantiating claims for their products through randomized clinical trials in addition to providing other research services such as participant recruitment, regulatory compliance solutions, research support services and consulting.

Along with KGK’s involvement in the health and wellness space, KGK has expanded their research capabilities to include cannabinoid and animal products in recent years.

Auxly Cannabis Group is a collective of entrepreneurs in the cannabis industry. The company is based in Vancouver, Canada.

Its shares were recently up 2.3% to CC$0.89 in Toronto.

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Tue, 21 Aug 2018 14:08:00 -0400 https://ca.proactiveinvestors.com/companies/news/203338/auxly-cannabis-acquires-cannabis-focused-canadian-research-group-kgk-science-203338.html