Auxly Cannabis Group Inc. (CBWTF) completed a strategic investment and a commercial rights agreement with Kaneh Bosm BioTechnology Inc. (KNHBF). The deal will give Auxly access to a significant and established portfolio of international cannabis licenses, assets and distribution networks.
Kaneh Bosm is changing its name to ICC International Cannabis Corp. but will continue to use its existing stock symbol. The shares should begin trading under the new name on September 20.
Kaneh Bosm specializes in the acquisition of marijuana projects and cannabis-related companies and has agreements in place for European-based pharmaceutical distribution, wholesale importation, research, and development. In addition to that, the company has working interests in industrial hemp licenses in Greece, plus licenses to cultivate, produce, distribute, store, and export cannabis and cannabis derivatives in Colombia, the Kingdom of Lesotho, Africa, and Denmark.
“Auxly’s investment in Kaneh Bosm represents another synergistic partnership that adds depth to the Auxly platform,” said Hugo Alves, President, and Director of Auxly. “This time, however, the partnership substantially expands our platform on an international scale. We commend Eugene and his team on the work they have done in acquiring the valuable platform of assets that make up Kaneh Bosm and we look forward to working together to build a meaningful international asset base.”
Eugene Beukman, Chief Executive Officer and Director of Kaneh Bosm, added, “We are very fortunate to have attracted a partner like Auxly. Their support is a further validator of our conviction that international opportunities in the right jurisdictions are likely to represent the next major growth and focus area for capital, as these significant markets mature and develop. Our licenses and target licenses in Europe and Latin America blanket a massive population of eligible and interested consumers.”
According to the company statement, Auxly has subscribed for $5,000,000 of senior unsecured convertible debentures of Kaneh Bosm by way of a non-brokered private placement. The debentures bear a coupon of 8.00% and have a maturity date of September 17, 2021. The debentures can be converted into units, at the option of the company, at a price of $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.