Auxly Cannabis Group Inc. CBWTF announced Wednesday the closing of a transaction with Imperial Tobacco Group plc IMBBY.

As previously announced in July, Imperial Brands invested CA$123 million ($92.8 million) in Auxly by way of a debenture that is convertible into 19.9% ownership of the cannabis company. 

Imperial is providing Auxly with global licenses to its vaping technology and access to its vapor innovation business, and will make Auxly its exclusive partner for its cannabis business operations, according to Wednesday's announcement. 

“We are delighted to announce the closing of this transaction to formally mark the start of our strategic partnership with Imperial Brands,” Auxly CEO Hugo Alves said in a statement.

“We believe there is considerable opportunity for growth and value creation for both companies. We are looking forward to working with the incredibly strong team at Imperial Brands as we prepare to launch our portfolio of branded derivative products, formulated and manufactured at our subsidiary, Dosecann, later this year. “

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Auxly is appointing Imperial's Conrad Tate to its board as a director and John Downing as a non-voting observer. 

“I’m thrilled to be closing this transaction with Auxly, a dynamic, highly skilled organization that has all the ingredients required for delivering success in the branded derivatives market and beyond,” Tate, Imperial Brands' new corporate development director, said in a statement.

“We’re excited by the opportunities this partnership offers and look forward to working with Auxly to build its business and realize its significant future growth potential.”

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Photo courtesy of Imperial Brands.