Auxly Cannabis Group Inc. has agreed to invest C$16.3 million to fund an expansion of Delta 9 Cannabis Inc.'s cultivation facility in Winnipeg, Manitoba.
Under the deal, Auxly subscribed to 5,909,090 Delta 9 common shares priced at C$2.75 apiece. In exchange for the investment, the medical marijuana company granted Auxly the right to buy a fixed amount of dried cannabis and cannabis trim from its facility within a 10-year period.
Delta 9 will use the funds for general working capital.
Vancouver, British Columbia-based Auxly Cannabis provides financial support to companies in the cannabis industry.