Auxly Sells KGK Science To Myconic Capital For Up To $16.5 Million
Auxly Cannabis Group Inc. (TSX: XLY) reported today an agreement with Myconic Capital Corp. (NEO: MEDI) which will see the latter acquire all issued and outstanding shares of KGK Science Inc. The acquisition will see aggregate consideration of $16.5 million in cash, credit, and shares.
The acquisition consists of an initial $12.5 million purchase price which includes $1.5 million and $1.0 million cash payable at the transaction’s close and 6 months after, respectively. This also includes the $10.0 million payment in Myconic common shares at $1.55 per share to be issued at the closing of the transaction.
On top of this, Myconic will also pay a $1.5 million milestone payment should KGK Science record $8.0 million revenue in any 12-month period within 2 years after the transaction’s closing date.
The agreement also entails the $2.5 million credit against future KGK services which is included in its service agreement with Auxly.
Auxly CEO Hugo Alves said that the sale gives the company additional liquidity that “can be deployed into [its] core business and [accelerate] Auxly’s path to profitability.”
The transaction is expected to close the week of June 7.
Auxly Cannabis Group Inc. last traded at $0.405 on the TSX while Myconic Capital Corp. last traded at $1.70 on the NEO.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
