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Aura Announces Enters European Market with Acquisition of Pharmadrug
Wednesday 22 May 2019

22 May 2019 - Canadian cannabis company Aura Health Inc. (CSE: BUZZ) has closed the acquisition of an 80% equity interest in German pharmaceutical distribution firm Pharmadrug Production GmbH for total consideration of EUR 5m (USD 5.58m), the company said.

Pharmadrug is a cash flow positive company with over 20 years of operating history and a Schedule I European Union narcotics license allowing for the distribution of medical cannabis to pharmacies in Germany and throughout the Eurozone as markets become legalised.

Pharmadrug has supply agreements in place with Bedrocan International B.V., Canadian Licensed Producers, and is currently supplying medical cannabis to pharmacies in Germany.

The company has satisfied the escrow release conditions pursuant to its previously announced private placement of a cumulative amount of 21,545,454 subscription receipts at a price of USD 0.22 per Subscription Receipt for gross proceeds of approximately USD 4.74m and has successfully drawn USD 3m from its previously announced bridge facility (see the press release issued by Aura on May 8, 2019).

Aura Health is building an international network of vertically integrated cannabis assets. Through an established product line of cannabis-infused edible products and oil extracts, Aura is dedicated to building a high margin downstream business in the medical marijuana sector.

The company owns 80% of Pharmadrug, a German medical cannabis and pharmaceutical distributor, as well as debt that converts to 54% equity of HolyCanna, a cultivation and nursery license holder in Israel. Aura also has a binding letter of intent to purchase CannabiSendak, the builder of a network of high-profile dispensaries in Israel.
Date Published: 22/05/2019
Target: Pharmadrug Production
Country: Germany
Deal Size: 5.58m (USD)
Sector: Pharmaceuticals
Type: LBO
Financing: Cash
Status: Closed
Buyer: Aura Health Inc