04:40:49 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Kaneh Bosm Biotechnology Inc (2)
Symbol KBB
Shares Issued 144,849,108
Close 2018-09-14 C$ 0.61
Market Cap C$ 88,357,956
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Auxly Cannabis invests $5-million in Kaneh Bosm

2018-09-17 07:26 ET - News Release

See News Release (C-XLY) Auxly Cannabis Group Inc

Mr. Chuck Rifici of Auxly reports

AUXLY CANNABIS GROUP AND KANEH BOSM BIOTECHNOLOGY INC. ANNOUNCE STRATEGIC INVESTMENT AND PARTNERSHIP AND NAME CHANGE OF KBB TO ICC INTERNATIONAL CANNABIS CORP.

Auxly Cannabis Group Inc. has completed a strategic investment and has entered into a commercial rights agreement with Kaneh Bosm Biotechnology Inc. The transaction provides Auxly access to a significant and established portfolio of international cannabis licences, assets and distribution networks. As a result of the transaction, Auxly believes that it has substantially accelerated its entry into numerous international cannabis markets and partnered with an ambitious team focused on future growth.

Kaneh Bosm, through its subsidiaries, has a number of agreements and licences in place related to pharmaceutical distribution, wholesale importation, research and development, cultivation, production, storage, and exportation of cannabis and cannabis derivatives. In particular, Kaneh Bosm has agreements in place to supply a European-based pharmaceutical distributor with a network of 35,000 pharmacies in 16 countries, in addition to working interests in industrial hemp licences in Greece and wholly owned licences to cultivate, produce, distribute, store and export cannabis in Colombia, the Kingdom of Lesotho and Denmark. In addition, Kaneh Bosm is actively pursuing further cannabis licences and related infrastructure in other international jurisdictions where cannabis is legal for medical or non-medical purposes. Kaneh Bosm intends to use the net proceeds from the investment to begin its growth and development under the strategic alliance with Auxly, as well as for working capital and general corporate purposes.

Pursuant to the terms of the investment, Auxly has subscribed for $5-million of senior unsecured convertible debentures of Kaneh Bosm by way of a non-brokered private placement. The debentures bear a coupon of 8.00 per cent and have a maturity date of Sept. 17, 2021. The debentures can be converted into units, at the option of the company, at a price of 53 cents per unit. Each unit consists of one common share of Kaneh Bosm and one common share purchase warrant exercisable into one common share of Kaneh Bosm at an exercise price of $1.06 for a period of three years.

In connection with the agreement, Auxly will become a preferred commercial partner to Kaneh Bosm for its future international and domestic cannabis ventures for a period of 10 years from the effective date of the agreement. In particular, during the term, Auxly has a right of first refusal, with certain limited exceptions, in respect of:

  • Supplying Kaneh Bosm's extensive worldwide distribution channels in the event that Kaneh Bosm is looking to source cannabis products;
  • Any sale or off-take agreement pursuant to which Kaneh Bosm intends to sell or distribute cannabis products to any third party;
  • Purchasing any of Kaneh Bosm's assets (including its subsidiaries) in the event that it intends to sell any such assets to a third party;
  • Licensing any intellectual property owned or developed by Kaneh Bosm, or its subsidiaries, in the event that Kaneh Bosm intends to license such intellectual property.

In return for the aforementioned rights, Auxly will, in certain circumstances, provide Kaneh Bosm with guidance and assistance for all future production facility design and development, cannabis licensing and regulatory compliance, cultivation strategy development, branding and marketing matters, distribution channel expansion, and related financing.

Hugo Alves, president and director of Auxly, stated: "Auxly's investment in Kaneh Bosm represents another synergistic partnership that adds depth to the Auxly platform. This time, however, the partnership substantially expands our platform on an international scale. We commend Eugene and his team on the work they have done in acquiring the valuable platform of assets that make up Kaneh Bosm and we look forward to working together to build a meaningful international asset base."

Eugene Beukman, chief executive officer and director of Kaneh Bosm, stated: "We are very fortunate to have attracted a partner like Auxly. Their support is a further validator of our conviction that international opportunities in the right jurisdictions are likely to represent the next major growth and focus area for capital, as these significant markets mature and develop. Our licences and target licences in Europe and Latin America blanket a massive population of eligible and interested consumers."

Name change

In addition, Kaneh Bosm is pleased to announce that, pursuant to a directors' resolution, Kaneh Bosm will change its name to ICC International Cannabis Corp. There will be no change to the symbol and Kaneh Bosm will continue to trade under the ticker KBB. The Canadian Securities Exchange will publish a bulletin announcing the effective date of the change in Kaneh Bosm's name and it is anticipated that the shares will begin trading under the new name on or about Thursday, Sept. 20, 2018. The Cusip number assigned to Kaneh Bosm's shares following the name change is 451079107 (ISIN: CA45107911078). No action is required to be taken by shareholders with respect to the name change. Outstanding share certificates are not affected by the name change and do not need to be exchanged.

Kaneh Bosm is also pleased to announce the launch of the company's redesigned website, which can be viewed on-line. Kaneh Bosm encourages all current and potential shareholders to visit the website and explore Kaneh Bosm's rebranding and redesign initiatives.

About Auxly Cannabis Group Inc.

Auxly Cannabis Group is a collective of entrepreneurs with a passion for the cannabis industry past, present and future. The company's mandate is to facilitate growth for its partners by providing them with financial support and sharing its collective industry experience.

About Kaneh Bosm Biotechnology Inc.

Kaneh Bosm specializes in the acquisition of marijuana projects and cannabis-related companies. Kaneh Bosm, through its subsidiaries, has agreements in place for European-based pharmaceutical distribution, wholesale importation, research and development, as well as working interests in industrial hemp licences in Greece, and licences to cultivate, produce, distribute, store and export cannabis and cannabis derivatives in Colombia, the Kingdom of Lesotho, Africa and Denmark.

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