Australis Capital Inc. (CSE:AUSA) (OTCMKTS:AUSAF) (FRA:AC4) unveiled significant expansion moves after the market close on Tuesday, announcing plans to acquire both Green Therapeutics LLC and 2750176 Ontario Inc., known as ALPS, and getting a new CEO in the process.
The company said it has entered into a non-binding term sheet dated January 4, 2020, with Green Therapeutics (GT) and the holders of the issued and outstanding membership interests of GT, setting forth the terms of a proposed transaction pursuant to which Australis will purchase 100% of the issued and outstanding membership interests in GT.
Australis will pay to the holders of the GT, membership interests between C$9.5 million and C$10 million for 100% of the outstanding GT membership interests.
Prior to completing the acquisition, the group added, the parties have agreed to settle a previously announced legal dispute regarding the original May 2019 transaction, when Australis had acquired certain non-operational GT assets.
GT is an award-winning, Nevada-based cannabis company with a strong brand portfolio of high-end dried flower and designer/luxury derivative products. GT was co-founded by former MedMen president – and current Australis interim CEO – Dr Duke Fu and is led by a strong team of medical professionals and pharmaceutical manufacturing experts.
The firm operates an 8,000 square foot facility in Nevada and its brands are carried by 52% of Nevada-based dispensaries, with further market penetration expected as production capacity is expanded. GT also has a manufacturing license in Oklahoma and a 25% interest in an extraction and processing license in Missouri.
Australis said the transaction, if completed, will be immediately accretive to its results as the current Nevada assets – which are the subject of the settled legal dispute – are non-operational. It