Tobacco group Imperial Brands invests 85 million euros in Auxly Cannabis Group

Auxly Cannabis Group a announced Wednesday the partnership agreement with Imperial Brand, formerly Imperial Tobacco Group. Imperial Brands is investing 85 million euros in Auxly in exchange for a 19.9% stake in Auxly.

Imperial Brands will provide Auxly with worldwide licenses for its vaping technology and access to its vaping innovation activities. Auxly will also become an exclusive partner for Imperial's commercial cannabis activities.

We are delighted to announce the closing of this transaction to officially mark the beginning of our strategic partnership with Imperial Brands», said Hugo Alves, CEO of Auxly, in the press release.

We believe that there are considerable opportunities for growth and value creation for both companies. We look forward to working with the incredible team at Imperial Brands to prepare for the upcoming launch of our portfolio of branded derivative products, formulated and manufactured in our subsidiary, Dosecann.»

Companies in the tobacco companies take a close look at the cannabis market and are on the lookout for opportunities. Altria (Marlboro) has invested 1.8 billion euros in Cronos, a Canadian cannabis producer, while Philip Morris is marketing a cannabis inhaler through its 20 million euro investment in Israeli company Syqe Medical.

Auxly is a Canadian cannabis producer.. The company also has a number of distribution agreements, for example with Dixie, a beverage producer. CBD-infused and/or THC, and a production subsidiary in Uruguay.