Accretive Transaction That Adds High-End Award-Winning Brands
Operationalizes AUSA with Multi-State Footprint
Acquisition Agreement Includes Resolution of Litigation by Unwinding Original Transaction
LAS VEGAS, Jan. 5, 2021 /PRNewswire/ – Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) (“AUSA” or the “Company”) today announced that the Company has entered into a non-binding term sheet dated January 4, 2020 with Green Therapeutics LLC (“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. Prior to completing the acquisition, the parties have agreed to settle a previously announced legal dispute regarding the original May 2019 transaction whereby AUSA 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 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.
GT 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.
Accretive: The transaction, if completed, will be immediately accretive to AUSA results as current Nevada assets (which are the subject of the settled legal dispute) are non-operational. Foundational MSO assets: It is anticipated that GT’s brands will be scaled up across multiple U.S. jurisdictions. GT currently operates an 8,000 sqft cultivation and manufacturing operation in Las