Auxly Cannabis Group Inc. (TSX.V: XLY) (OTC: CBWTF) received a $123-million investment via a convertible debenture from tobacco behemoth Imperial Brands PLC (OTC: IMBBY), gaining access not only to a big chunk of capital, but also to Imperial Brands’ vaping technology and vapor innovation business, Nerudia.
Fire & Flower Holdings Corp (OTC: FFLWF) received an investment of almost CA$26 million ($19.7 million), retaining the right to acquire a controlling interest for a total investment of roughly CA$380 million.
“It was inevitable that mainstream corporations would want a piece of the cannabis pie,” Green Market Report CEO Debra Borchardt told Benzinga.
“It makes perfect sense for the cannabis companies to take the money, but one has to wonder at what cost? Will these corporations change the cannabis industry for the worse or will cannabis be able to maintain its character despite the dominance of traditional big business?”
Only time will tell, she said.