August 2, 2019
Canadian cannabis company Auxly Cannabis Group will receive an investment to the tune of $123 million (£101 million) and global licences to vaping technology from British tobacco giant Imperial Brands.
Auxly said it will also get access to Imperial Brands’ vapor innovation business, Nerudia.
“This investment from Imperial Brands will enhance Auxly’s ability to continue to deliver on our business plans and accelerate our growth initiatives to expand our portfolio of branded derivative products,” said Hugo Alves, president of Auxly.
Auxly is set to launch its portfolio of cannabis products later this year following the legalization of the recreational use of cannabis by Canadian government in October 2018.
The company added that it will work closely with Nerudia in developing a portfolio of new and enhanced vapor products and brands.
Nerudia has a growing team dedicated to cannabis research and a facility that is already licensed for research and development activities with cannabis.
“We are particularly excited to partner with Imperial Brands on current and future intellectual property and product development, starting with immediate access to its portfolio of vaping technologies and research and development capabilities,” said Chuck Rifici, chairman and chief executive of Auxly.
Upon completion of the deal, Auxly will become Imperial Brands’ exclusive partner for the future development, manufacture, commercialization, sale and distribution of cannabis products of any kind anywhere in the world.
Auxly will have the rights to Imperial Brands’ vaping technology and intellectual property for cannabis use globally under the deal.