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.
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