Accretive Transaction Adds High-Margin Revenues and Award-Winning Brands
Foundational Asset in AUSA’s Multi-State Footprint
Acquisition Agreement Includes Resolution of Litigation by Unwinding Original Transaction
LAS VEGAS, March 12, 2021 /CNW/ – Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) (“AUSA” or the “Company”) today announced that, further to the Company’s press release of January 5, 2021, AUSA has entered into a definitive agreement on March 11, 2021 with, among others, Green Therapeutics LLC (“GT”) and the holders of the issued and outstanding membership interests of GT concerning the acquisition of GT.
The transaction will be completed in two parts, the first being the acquisition of a subsidiary of GT (the “Subsidiary”) containing a number of unregulated assets including the GT brands and certain ancillary agreements including brand licensing and management agreements. Subsequently, subject to regulatory approval, the Company will complete the acquisition of GT itself (the “Subsequent Closing”). In conjunction with, and as a condition to the completion of the acquisition of the Subsidiary (the “Initial Closing”), the parties have agreed to settle a previously announced legal dispute which will be formally discharged contemporaneously with the Initial Closing, expected later this month.
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 Dr. Duke Fu and is led by a strong team of medical professionals and pharmaceutical manufacturing experts. GT’s team has a strong execution track record with several company exits and an acquisition by a Fortune 500 corporation.
Accretive: The transaction, when completed, will be immediately accretive to AUSA results. While Nevada state regulations require prior approval of any transfer of an interest in a cannabis establishment or license, the timing of which the Company has no control