Vancouver-based Auxly said in a press release that the purchase of the Montevideo, Uruguay-based company enhances its role as an international distributor of cannabinoids. Auxly added that its partnership with ICC International Cannabis Corp (CSE:WRLD) (OTCMKTS:KNHBF) gives it access to 16 markets through a network of 35,000 pharmacies.
READ: Auxly Cannabis shares rocket as it advances $4m to Lotus Ventures to complete growing facility
“The low-cost and high-volume access to cannabidiol molecules, through our ownership in Inverell, positions Auxly to be a leader in the global value-added cannabinoid-based product markets,” Auxly President and Director Hugo Alves said in a statement.
He added that Inverell exceeded its 2018 planting target of 150 hectares (370 acres) of hemp plants and has made progress in developing its extraction facility.
Under the deal, Auxly paid US$2 million in cash, US$3.56 million through the issuance of 1.9 million common shares at C$2.28 a share and U$9.4 million through the issuance of 5.1 million shares to be held in escrow pending the achievement of certain milestones.
Those milestones include the registration of Inverell’s cannabis genetics and the export of cannabidiol products.
Shares of Auxly rose US$0.03, or 3.7%, to US$0.66 in after-hours OTC Markets trading. They fetched C$0.88 in Canada on Tuesday.
Contact Dennis Fitzgerald at [email protected]