Auxly Reports Imperial Brands Exercises Its Top-Up Rights Under Subscription Agreement
December 17 2019 - 7:30AM
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.comPhone: 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.
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