Imperial Brands Plc., the parent company of Imperial Tobacco, ITG Brands, Fontem Ventures, and Altadis U.S.A., is banking on cannabis for future growth. Imperial Brands has announced plans to invest approximately $123 million in Auxly Cannabis Group by way of a convertible debenture. The Investment will give Auxly global licenses to Imperial Brands’ vaping technology and access to its vapor innovation business.
Auxly is an international cannabis company that produces effective, high-quality cannabis products to the medical, wellness and adult-use markets. When the deal closes, Auxly and Imperial Brands will establish a Commercial Cooperation Group (CCG) that will create collaboration between the two companies to enable them to leverage their respective capabilities and expertise for the benefit of growing Auxly’s business. Each company will appoint four representatives to the eight-member CCG.
“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,” commented Hugo Alves, president of Auxly. “The timing is ideal as we prepare to bring our portfolio of innovative cannabis products to the Canadian market following the legalization of edibles, extracts and topicals later this year.”