Last week, Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) released a corporate update and we are favorable on how the story has advanced so far this year.
We recently identified Australis as an emerging US cannabis company that is executing on a capital light expansion strategy. Through the (part) ownership of ALPS and Green Therapeutics (GT), the company is well positioned to capitalize on the US cannabis market, and we are favorable on how the management team has positioned the platform for continued growth.
After New York legalized recreational cannabis, Australis made this market a priority and is in discussions with several potential partners with a variety of partnership models. According to Forbes, the legal cannabis industry in New York State is expected to capture $1.2 billion in sales by 2023 and $4.2 billion.
Focused on Executing on an East Coast Expansion Strategy
As part of a northeastern US growth strategy (New York, New Jersey, Pennsylvania, Michigan, others), Australis is putting together a team of operators, license application specialists and influencers, who have a proven track record of success in the cannabis industry. By assembling a best-in-class team, the company is positioning itself to capitalize on emerging US markets and we are favorable on this aspect of the story.
More than eight months ago, the Australis management team started to discuss the east coast cannabis market and we are favorable on the amount of work this went into the development of a multi-faceted growth strategy. The company now plans to now accelerate the discussions that it has been having to determine the best opportunities to strengthen its applications and negotiations. The planned additions to the team are expected to substantially strengthen Australis’ execution ability in these new markets and we will monitor this aspect of the story.
In the corporate update, Australis