Australis Capital Inc (CSE:AUSA) (OTC:AUSAF) (FRA:AC4) announced Wednesday that it has completed the first stage of its previously announced acquisition of Nevada cannabis company Green Therapeutics LLC (GT), by purchasing one of its subsidiaries.
The subsidiary contains a number of unregulated assets, including the GT brands and certain ancillary agreements such as brand licensing and management agreements. Subsequently, the company will complete the acquisition of GT itself. In total, Australis will pay to the holders of the GT membership interests between C$8 million and C$10 million for 100% of the outstanding membership interests of both GT and the subsidiary.
GT is an award-winning, Nevada-based cannabis company with a strong brand portfolio of high-end dried flower and luxury derivative products. GT was co-founded by former MedMen president — and current Australis COO — Duke Fu and is led by a strong team of medical professionals and pharmaceutical manufacturing experts.
“We continue to execute at a high pace and will be accelerating our growth, now that the first stage of the GT transaction is closed,” CEO Terry Booth said in a statement. “… the GT team brings productive and valuable cannabis operations and assets, very deep connections in the Nevada cannabis industry and elsewhere, and access to a host of potential partnerships and transactions. The credibility that GT has built in the Nevada market and beyond is of great value as we continue to build a new type of [multi-state operator]. Leveraging our majority ownership of ALPS creates other unique opportunities to scale the GT brands and positions us exceptionally well to capitalize on the enormous opportunity in the US cannabis space.”
Completion of the transaction marks the Australis’ entry into the US cannabis space as an operator, transitioning away from