NewsMarketsSecond Cannabis Investment For UK Tobacco Firm

Second Cannabis Investment For UK Tobacco Firm

-

BRITISH tobacco giant Imperial has demonstrated its ambition in the legal cannabis industry with a second foray into the sector.

A recent £75m investment will provide Canadian firm Auxly Cannabis Group access to Imperial’s vaping technology.

This follows its initial investment into fellow UK firm Oxford Cannabis Technologies (OCT) in June, 2018.

Imperial, which makes the Lambert & Butler and Golden Virginia tobacco brands, say the Auxly move is part of an ongoing diversification strategy, which has seen it develop a growing presence in the heated tobacco and electronic vaping sectors.

Matthew Phillips, Imperial’s Chief Development Officer said: “Diversifying our Next Generation Product portfolio with this investment provides Imperial with further options for future growth and builds on last year’s investment in Oxford Cannabinoid Technologies.” 

Toronto-listed Auxly is strongly focused on developing the ‘Generation 2’ Canadian cannabis products, namely; edibles, vapes and lotions which were approved for sale last last year.

The deal gives Bristol-based Imperial a 19.9% stake in Auxly through a three-year convertible loan at a price of 81 cents per share.

OCT is a medical cannabis research company, Backed by Snoop Dogg’s venture firm and Star Wars actor Patrick Stewart, which says it aims to ‘unravel the secrets of a plant that has been stigmatised for decades’. 

Imperial is the latest consumer goods company to make a foray into cannabis. Last year Marlboro maker Altria Group announced a $2.4 billion investment in Cronos Group. 

Tilray has struck an agreement to collaborate on medical cannabis with Sandoz AG, part of the Novartis pharmaceutical Group and Canada’s Canopy Growth is receiving over $5 billion of investment from alcohol giant Constellation Brands.

Peter
Peter
Peter McCusker is an experienced news and business editor, who believes it’s time to fully embrace the multiple, proven, medical benefits of the cannabis plant.

Latest news

MGC Pharmaceuticals Releases Update On CimetrA Clinical Trial Progress In USA

MGC Pharmaceuticals Ltd (ASX, LSE: MXC, ‘MGC Pharma’ or ‘the Company’), a European based bio-pharma company specialising in the production and development...

European Cannabis Stocks Review: Akanda’s ‘Concerned Shareholders’ Oust All Directors Except CEO To Prevent ‘Potentially Irreparable Harm’ – More From Goodbody Health & Chill...

It has been another week of positive developments for the cannabis industry across Europe, with yet more markets making...

Analysis Shows UK Market Could Grow To Over £1bn By 2026 As London Prepares To Host Europe’s Leading Cannabis Conference

ANALYSIS shows UK market could grow to over £1bn by 2026 as London prepares to host Europe’s leading cannabis...

Medical Cannabis Could Be Available In Spain By The End Of The Year

SPAIN could now see the regulation and distribution of medical cannabis rolled out before the end of the year...

New UK Company Heralds Its ‘Unique’ Medical Cannabis Delivery Mechanism

CANNABIS extraction and formulations specialist 113 Botanicals is in the process of securing Good manufacturing Practice (GMP) compliance for...

German Cannabis Bill By Year End With Adult-Use Launch Likely In Early 2024

GERMANY’s draft cannabis law should be ready by the end of the year with the launch of its adult-use...

Must read

You might also likeRELATED
Recommended to you