Aura Health Inc. (CNSX:BUZZ) entered into a binding letter of intent to acquire 80% stake in Pharmadrug Production GmbH from Anquor Pharmaceuticals Ug for €5 million on January 24, 2019. Post-completion, Anquor Pharmaceuticals will retain 20% stake in Pharmadrug. Pursuant to the terms of LOI, Aura Health will pay €1 million in advance as at January 31, 2019, €1 million in advance as at February 28, 2019 and remaining €3 million in advance as at May 31, 2019. On February 27, 2019, definitive share purchase agreement has been signed. As on February 28, 2019, Aura Health Inc. paid €2 million of the total purchase price by advance installments of €1 million on January 31, 2019 and February 28, 2019, which are fully refundable incase the transaction does not close and €2.5 million to be paid on closing. Anquor Pharmaceuticals will be entitled to receive an earn-out payment of €0.4 million if the total revenues of the pharmaceutical tender business of pharmadrug for the 2019 financial year are 90% or more of the total revenues of that business segment for the 2018 financial year. The earn-out, if any, will be due and payable to Anquor on March 1, 2020. Aura will also advance €0.4 million to Pharmadrug as shareholder loan to assist Pharmadrug to maintain appropriate levels of working capital. As per the terms, the consideration will be funded by cash in hand. Aura Health will raise CAD 5 million (€3.34 million) way of private placement to fund the transaction. As of February 21, 2019, Aura Health has increased the private placement to CAD 7.3 million (€4.88 million) to fund the transaction. As of April 17, 2019, Aura Health will generate CAD 7.7 million (€5.1 million) to close the acquisition. The transaction is subject to customary conditions precedent, including but not limited to, satisfactory due diligence, no material adverse change and the entering into a definitive agreement and regulatory approvals. The transaction is expected to close on March 29, 2019. As on February 28, 2019, the transaction is expected to close on May 31, 2019. Fabian Christoph, Alexandra Nautsch, Piet Weinreich, Philipp Raben and Mattis Aszmons of Osborne Clarke acted as legal advisors to Aura Health Inc.