Aura Closes Strategic Investment Into HolyCanna, Bolstering International Strategy
24 November 2018 - 12:12AM
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. (647)
202-1824
David Posner, ChairmanAura Health Inc. (647)
985-6727
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.
The Company's securities have not been
registered under the U.S. Securities Act of 1933, as amended (the
"U.S. Securities Act"), or applicable state securities laws, and
may not be offered or sold to, or for the account or benefit of,
persons in the United States or "U.S. Persons", as such term is
defined in Regulation S under the U.S. Securities Act, absent
registration or an applicable exemption from such registration
requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in the United States or any jurisdiction in
which such offer, solicitation or sale would be unlawful.
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.
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