Toronto-based marijuana asset company Aura Health Inc. (CSE: BUZZ) is about to expand operations into Israel by purchasing a majority stake in HolyCanna Ltd, a licensed cannabis cultivator.
Aura Health just announced the closing of a letter of intent for a $3.57 million deal to buy 54% equity in HolyCanna.
The deal will take place as an unsecured convertible note, with the full amount to be paid in stages through February of 2019, and grants Aura Health a position on the HolyCanna board of directors.
This impending acquisition follows a recent change in management for Aura Health.
The company just appointed Howard Brass as new Chief Operating Officer on Nov. 19, while Aura’s board also approved a new stock compensation plan for upper management.
Under the terms of the plan, 3 million common shares will be issued over three years between the company’s new COO as well as existing CEO Daniel Cohen.
Last month, Aura additionally closed a non-brokered private placement offering of unsecured convertible debentures to raise $400,000 in working capital.
Aura’s Chief Executive Officer Daniel Cohen had this to say about the deal to acquire Israel-based HolyCanna:
“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.”
Cohen went on to say, “As a company, we seek [to] acquire and develop differentiated, value-added cannabis businesses and we believe HolyCanna fits very well within this strategy.”
Recreational marijuana may now be legal in Canada for adult usage, but that hasn’t stopped Canadian companies from expanding internationally, both in terms of acquisitions and research.
Last month, Cronos Group (NASDAQ: CRON; TSX: CRON) announced plans to engage in a medical marijuana research partnership with the Technion – Israel Institute of Technology, while Veritas Pharma Inc. (CSE: VRT) just began human trials of a new strain of pain management cannabis in San Juan, Puerto Rico.