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Auxly Cannabis Group and British tobacco giant Imperial Brands agreed to extend by 24 months the maturity date of a debenture worth 123 million Canadian dollars ($94 million), to Sept. 25, 2026.
The maturity date had been set at Sept. 25, 2024.
The debentures are convertible into common shares at a price of CA$0.81 per share, the companies said in a news release.
The cannabis producer’s shares are currently trading at 2 cents.
Imperial invested CA$123 million in Auxly in 2019, which, at the time, was among the largest investments in cannabis by a tobacco firm.
At the time, the investment gave Imperial a 19.9% stake in the cannabis business.
Meanwhile, Auxly and Imperial also announced the resignation of Imperial’s representative from Auxly’s board.
“As Imperial Brands no longer holds the required percentage under the Investor Rights Agreement, its nominee, Murray McGowan, has resigned from Auxly’s board effective immediately,” according to a statement from the companies.
Auxly said it remains Imperial’s exclusive global partner with regard to any potential development, manufacture, commercialization, sale or distribution of cannabis products.
Shares of Auxly trade as XLY on the Toronto Stock Exchange.