Founded in 2014, Green Therapeutics has established three in-house cannabis brands. Under the asset purchase agreement, Australis will acquire the company’s Tsunami, Provisions, and GT Flowers cannabis brands, certain operating assets, intellectual property.
The deal also includes the acquisition of the rights to assume, complete and expand the construction of a state-of-the-art 55,000-square-foot cultivation and production facility in North Las Vegas, Nev. The 8.9-acre parcel of land in North Las Vegas has the potential to support a 400,000-square-foot cultivation and production facility which will be built to the Aurora Cannabis standard.
In addition, the acquisition will include Green Therapeutics’ experienced operating team.
Australis will issue up to $8.0 million of its common stock to complete the acquisition. The company issued 7,831,855 shares valued at $6.4 million upon the signing of a definitive agreement. An additional $800,000 will be issued when the new cultivation and production facility in North Las Vegas is fully licensed and operational and an additional $800,000 in shares will be issued if certain performance goals are reached.
In a separate transaction, Australis acquired from Meridian Companies an 8.9-acre parcel of land in North Las Vegas in exchange for $2.93 million of its common stock or 3,585,521 common shares where the new cultivation and production facility will be located.
The transaction will also establish Australis’ flagship cultivation and manufacturing location in Nevada, a state chosen for its favorable cannabis regulations, tremendous tourism and accelerated growth. The new production and cultivation facility will feature indoor greenhouses, state-of-the-art control systems and, a modern manufacturing, production, and post-production facility.
The deal will also provide Australis with six acres of improvable/vacant land in North Las Vegas which will be held for potential future expansion opportunities. The company will fund the construction of