Imperial Brands has topped up its position in Auxly Cannabis (TSXV: XLY). The move is part of the original $123 million investment agreement signed between the two firms back in July, wherein Imperial has the right to top up its position in the cannabis firm should its equity position become diluted. With the recent conversion of convertible debentures, the firm has elected to do just that to maintain its 19.9% ownership stake.
In total, Imperial has invested a further $5.2 million in the cannabis operator for an aggregate 6,315,574 common shares. The top up arrangement saw 914,960 common shares subscribed to at a price of $0.91 per share, while the remaining 5,400,614 were $0.81 each.
Auxly did not indicate what the additional funds would be put towards, although its presumed to be the standard “working capital and general corporate purposes.”
Auxly Cannabis last traded at $0.61 on the TSX Venture.
Information for this briefing was found via Sedar and Auxly Cannabis Group Inc. The author is no position in this security and has no 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.
