Aura to Acquire Majority Interest in Israeli Cannabis Retailer in Partnership With Industry Icon Shlomi Sendak
September 05 2018 - 8:33AM
Aura Health Inc. (the "
Company" or
“
Aura”) (
CSE: BUZZ) is very
pleased to announce it has entered into a binding term sheet
(“
Term Sheet” or “
Agreement”) to
acquire 57% of the outstanding equity of CannabiSendak LTD.
(“
CannabiSendak”), an Israeli cannabis company
founded by iconic Israeli cannabis activist Shlomi Sendak.
CannabiSendak intends to establish licensed medical cannabis
dispensaries throughout Israel which will provide an unrivalled
customer experience, featuring a café, patient consultations and
medical professionals on site. CannabiSendak will use HolyCanna as
its primary provider of branded cannabis products. HolyCanna is an
Israel-based cultivation and nursery license holder which the
Company previously entered a binding LOI to acquire a majority
equity stake in (see press release dated August 22nd, 2018).
Terms of the LOI are as follows (all figures in
USD$):
- The Company will purchase common shares of CannabiSendak for
$300,000 upon closing of the Agreement, and will make contingent
payments to CannabiSendak of $200,000 after CannabiSendak reaches
clientele of 500 active medical cannabis patients, and additional
payments of $250,000 for every incremental 500 active patients
CannabiSendak achieves thereafter;
- The Company will purchase common shares of CannabiSendak from
the treasury of CannabiSendak for $200,000, payable in equal
tranches of $40,000 over a 5-month period, commencing once
CannabiSendak obtains the necessary licenses and approvals for the
establishment of dispensaries;
- The Company will purchase common shares from the treasury of
CannabiSendak for $200,000 for the establishment of dispensaries.
This consideration will be divided into 4 equal payments of $50,000
each paid every 45 days, commencing the day of signing the
Agreement (September 4th, 2018).
Daniel Cohen, CEO of Aura, commented, “We are
very pleased to announce this exciting transaction and look forward
to working with Shlomi and his team to develop our retail footprint
throughout Israel. We believe our cannabis retail strategy will
provide significant value creation for our shareholders because of
its holistic focus and partnership with industry icon Shlomi
Sendak. As a company, we seek to acquire and develop
differentiated, value-added cannabis businesses and we believe
CannabiSendak further bolsters this objective."
About Aura Health Inc.
Aura, through its wholly-owned Delaware
subsidiary, Green Global Properties Inc. ("Green
Global"), owns a 30% interest in four medical marijuana
clinics in Las Vegas, Nevada; Mesa, Arizona; Tucson, Arizona and
Hollywood, Florida, respectively. Green Global has an option to
increase its interest in each such clinic (other than the Nevada
clinic) to 51%. Aura currently has an LOI in place to acquire a 54%
interest in HolyCanna, an Israel-based cultivation and nursery
license holder.
For further information, please contact:
Daniel Cohen, CEO Aura Health Inc. (647)
202-1824
David Posner, Director and Chairman
Aura Health Inc. (647) 985-6727
Caution Regarding Forward-Looking
Information:
This news release may contain forward-looking
statements and information based on current expectations. Any such
forward-looking statements may be identified by words such as
"expects", "anticipates", "believes", "projects", "plans" and
similar expressions. Forward looking information in this news
release includes the following statements: (i) expected trading
date on the CSE; (ii) management's belief that the listing on the
CSE will increase pool of potential investors and bring other
benefits, and (iii) management’s plan to build an international
network of vertical integrated businesses in the medical marijuana
field. Certain information contained in this press release
constitutes forward-looking information, which is information
relating to future events or the Corporation's future performance
and which is inherently uncertain. All information other than
statements of historical fact may be forward-looking information.
Forward-looking information is often, but not always, identified by
the use of words such as "seek", "anticipate", "budget", "plan",
"continue", "estimate", "expect", "forecast", "may", "will",
"project", "predict", "potential", "targeting", "intend", "could",
"might", "should", "believe" and similar words or phrases
(including negative variations) suggesting future outcomes or
statements regarding an outlook. Forward-looking information
contained in this press release includes, but is not limited to,
final acceptance of the RTO Transaction by CSE and listing of the
Corporation's shares. Forward-looking information involves known
and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking information. The Corporation
believes the expectations reflected in the forward-looking
information are reasonable but no assurance can be given that these
expectations will prove to be correct and readers are cautioned not
to place undue reliance on forward-looking information contained in
this press release. Some of the risks and other factors which could
cause results to differ materially from those expressed in the
forward-looking information contained in this press release
include, but are not limited to: the risks that the RTO Transaction
and associated transactions will not be accepted by the CSE, and
other risks included in the Listing Statement available at
www.sedar.com. The forward-looking information contained in this
press release is made as of the date hereof and the Corporation
undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as otherwise
required by law.
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