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Aura Announces Binding LOI to Acquire Licenced Medical Cannabis Distributor in Germany
TORONTO, Jan. 25, 2019 (GLOBE NEWSWIRE) -- Aura Health Inc. (the “Company” or “Aura”) (CSE:BUZZ) is pleased to announce that the Company has entered into a binding letter of intent (the “LOI”) to acquire 80% of Pharmadrug Production GmbH (“Pharmadrug”) for EUR5,000,000.
Pharmadrug is a cash flow positive German pharmaceutical distribution company with over 20 years of operating history. Pharmadrug has a Schedule I European Union narcotics licence that allows the business to distribute medical cannabis to pharmacies in Germany and the rest of the Eurozone as markets become legalized. Pharmadrug has a supply agreement with Bedrocan International B.V. and is expecting its first cannabis shipment next week. Pharmadrug also has a supply agreement with a Western Canadian LP and is currently assisting them in achieving Euro GMP certification.
The seller, Anquor Pharmaceuticals Ug, will retain a 20% interest in Pharmadrug and will continue to participate in the strategy of the company from its Berlin office.
As per the terms of the LOI, the Company will pay for the shares of Pharmadrug as follows:
- An advance of EUR1,000,000 as at January 31, 2019;
- An advance of EUR1,000,000 as at February 28, 2019; and
- An advance of EUR3,000,000 as at May 31, 2019.
Daniel Cohen, CEO of Aura, commented, “We are very excited about this transformative transaction and believe that this is a major building block to establishing Aura as a leading medical cannabis supplier to the European markets. Pharmadrug fits well strategically with our Israel business. With the imminent opening of the Israeli export law and Israeli GMP complying with European GMP, we will have a strategic avenue to export cannabis from Israel into the European Union.”
The LOI is subject to customary conditions precedent, including but not limited to, satisfactory due diligence, no material adverse change and the entering into of a definitive agreement.
About Aura Health Inc.
Aura Health is building an international network of vertically integrated cannabis assets. Through an established product line of cannabis-infused edible products and oil extracts, Aura is dedicated to building a high margin downstream business in the medical marijuana sector. The company holds convertible debt that converts to 54% equity of HolyCanna, a cultivation and nursery license holder in Israel. The company also owns a 30% interest in four medical marijuana clinics in the U.S. Sun Belt.
For further information, please contact:
Daniel Cohen, CEO
Aura Health Inc.
David Posner, Chairman
Aura Health Inc.
Caution Regarding Forward-Looking Information:
THE CANADIAN SECURITIES EXCHANGE HAS NOT REVIEWED NOR DOES IT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such statements include submission of the relevant documentation within the required timeframe and to the satisfaction of the relevant regulators, completing the acquisition of the applicable real estate and raising sufficient financing to complete the Company's business strategy. There is no certainty that any of these events will occur. Although such statements are based on management's reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. We assume no responsibility to update or revise them to reflect new events or circumstances.
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