TORONTO, Sept. 05, 2018 (GLOBE NEWSWIRE) -- 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.