Save 60% Off all remaining inventory with Promo Code: ICE

Second Cannabis Investment For U.K. Tobacco Firm

August 19, 2019

TOBACCO giant Imperial Brands has made its second foray into the cannabis market in a deal with Canadian company Auxly.

The £75m investment will allow Auxly Cannabis Group access to leading vaping technology and product development experts at U.K.-based Imperial Brands. This is the second move by Imperial into the cannabis industry following its investment into fellow U.K. firm Oxford Cannabis Technologies (OCT) in June, last year.

Next Generation Products

Imperial, which makes the Lambert & Butler and Golden Virginia tobacco brands, say the Auxly move is part of an ongoing diversification strategy, which has seen it develop a growing presence in the heated tobacco and electronic vaping sectors.

“Diversifying our Next Generation Product portfolio with this investment provides Imperial with further options for future growth and builds on last year’s investment in Oxford Cannabinoid Technologies,” said Matthew Phillips, Imperial’s Chief Development Officer. 


Auxly, which is listed on the Toronto stock exchange, is strongly focused on developing the ‘Generation 2’ Canadian cannabis products, namely; edibles, vapes and lotions which will be legalised this October.

The deal gives Bristol-based Imperial a 19.9 per cent stake in Auxly through a three-year convertible loan at a price of 81 cents per share. Auxly’s stock surged by 20% on release of the news earlier this month, but later slid back.

Auxly Has Been ‘Floundering’

Analysts say the investment is a good move for Auxly which has been ‘floundering’ of late. One analyst writing for Yahoo Finance said some investors had shareholders ‘soured’ on Auxly Cannabis Group due to its ‘low performance, and ‘weak stable companies’

It went on to say the Auxly had been ‘floundering and many questions have been raised by disgruntled shareholders and former investors as to the viability of the business model of the company, and its ability to execute it profitably’.

Big Brands Pile Into Cannabis

OCT is a medical cannabis research company, Backed by Snoop Dogg’s venture firm and Star Wars actor Patrick Stewart, which says it aims to ‘unravel the secrets of a plant that has been stigmatized for decades’. Imperial is the latest consumer goods company to make a foray into cannabis.

Last year Marlboro maker Altria Group announced a $2.4 billion investment into the Cronos Group. Tilray has struck an agreement to collaborate on medical cannabis with Sandoz, part of the Novartis pharmaceutical Group, and Canada’s Canopy Growth is receiving over $5 billion of investment from alcohol giant Constellation Brands.

The post Second Cannabis Investment For U.K. Tobacco Firm appeared first on Cannadelics.





Also in Education

Owning Guns is a Constitutional Right, Unless You’re a Cannabis User

September 28, 2022

Take two of the most hot-button, tendentious issues of our time – cannabis use and gun rights – combine them, and now we really have a debate. As the law currently stands, medical cannabis patients are not afforded their 2nd amendment right to bear arms. Technically, all cannabis consumers are banned from buying guns, but only medical […]

The post Owning Guns is a Constitutional Right, Unless You’re a Cannabis User appeared first on Cannadelics.

Continue Reading

Cannabis policy changes in Africa are welcome. But small producers are the losers

September 28, 2022

TESTSTSARDSAR

Cannabis policy changes in Africa are welcome. But small producers are the losers by Clemence Rusenga

Cannabis is a drug crop with a long history in Africa. Alongside coca and opium poppy, it has been subjected to international control for nearly a century. The International Opium Convention of 1925 institutionalised the international control system and extended the scope of control to cannabis. In 1961 a new international convention was adopted to […]

A link to your site, with your site's name and description as anchor text.

Continue Reading

University of Sydney to Offer Free Cannabis Testing

September 27, 2022

TESTSTSARDSAR

University of Sydney to Offer Free Cannabis Testing by Johnny Green

The University of Sydney is launching a fairly robust study in an attempt to, as the university describes it, “investigate cannabis consumption, behaviours, and attitudes among users.” Part of the study involves offering free, anonymous cannabis testing for people that cultivate their own cannabis in the Australian Capital Territory (ACT). Cannabis was decriminalized in 2020 in the […]

A link to your site, with your site's name and description as anchor text.

Continue Reading

Inventory Clearance Sale

Save 60% Off all remaining inventory with Promo Code: ICE