Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF) has announced this morning that the company has entered into a binding agreement to acquire 80% of the issued and outstanding common shares of Inverell S.A., a large-scale hemp derived CBD producer located in Uruguay. The two companies have received approval from the regulatory bodies in Uruguay that oversees foreign investments into companies located in the country called SENACLAFT.
Inverell S.A. is ran by Dr. Raúl Urbina who has increased the company’s owned acres to 300 hectares which the company has recently completed planting of hemp plants on 150 hectares. The expectation is that the company is going to be completing harvest by April 2019.
The following are the terms of the transaction:
- Auxly Cannabis Group will pay USD$2,000,000 in cash on the date of the closing of the transaction
- 1,562,500 common shares will be issued to Inverell S.A at a price of CDN$2.28 on the date of the Closing;
- An additional USD$9,437,500, which will be paid via the issuance of 4,139,253 common shares of Auxly Cannabis Group at a price per share of CDN$2.28 per share. This will be held in escrow pending the achievement of certain milestones following Closing.
Dr. Raúl Urbina, Founder and Chief Executive Officer of Inverell gave this statement in the press release
“We could not be more pleased to have reached this historic milestone and to formally join the Auxly family. We are very excited to partner with a company that shares our core values and vision and one that will allow us to better deliver cannabis products under our 3 ‘P’ philosophy: People, Planet, Profit.”