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Aura Closes Strategic Investment Into HolyCanna, Bolstering International Strategy
TORONTO, Nov. 23, 2018 (GLOBE NEWSWIRE) -- Aura Health Inc. (the "Company" or “Aura”) (CSE:BUZZ) is pleased to announce the closing of its previously announced letter of intent (“LOI”) to secure a majority (54%) equity stake in HolyCanna Ltd. (“HolyCanna”), an Israel-based company with a cannabis nursery and cultivation license (the “License”). The Company has subscribed to an unsecured convertible note (“Convertible Note”) in HolyCanna which automatically converts to 54% equity once Aura is added to the License. Aura will be immediately entitled to a control position on the board of HolyCanna.
As per the terms of the LOI, the Company has subscribed to the (Israeli Shekel) ILS10 million (CAD$3.57 million) Convertible Note under the following terms:
- ILS1 million already advanced;
- ILS2 million as at December 15, 2018;
- ILS3.5 million as at February 1, 2019; and
- ILS3.5 million after February 1, 2019 upon request made by HolyCanna.
Daniel Cohen, CEO of Aura, commented, “We are very pleased to be closing this transformational acquisition and further develop our international strategy going forward. Israel offers significant opportunity for value creation both within the country and through future potential export opportunities. As a company, we seek acquire and develop differentiated, value-added cannabis businesses and we believe HolyCanna fits very well within this strategy.”
About Aura Health Inc.
Aura is building an international network of vertically integrated cannabis assets. The company holds convertible debt that converts to 54% equity of HolyCanna, a cultivation and nursery license holder in Israel, and has an LOI in place to acquire the majority of CannabiSendak, the builder of a network of high-profile dispensaries in Israel. Aura also owns a 30% interest in four medical marijuana clinics in the U.S. Sun Belt, with an option to increase its interest in three of the clinics to 51%.
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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Additionally, there are known and unknown risk factors which could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.