Australis Cuts Cash Burn, Moves Forward in New York

Australis says it will begin harvesting in October in New York.

Australis Capital, also known as Audacious, (CSE: AUSA)(OTCQB: AUSAF) says it has cut its cash burn by almost 50% and provided investors with an update on its two projects in New York state.

The first project, located in Broome County. is being developed in collaboration with its partner Hempire. The second project, which Australis partnered with First Americans on the Saint Regis Mohawk Territory on, is also underway.

Australis said that both projects have been licensed by the respective regulatory authorities for the cultivation and manufacturing of cannabis products for the adult-use market. Australis noted that it plans on entering the market with a derivative product that will be made available for the manufacturing of vapes and edibles.

Broome County

Australis said that the Broome County project will be able to sell statewide to licensed dispensaries. The company started growing cannabis on its wholly owned Broome County property with its partner Hempire.

The company said it planted outdoor cultivation for the initial crops as a way to save money and have an available product as quickly as possible. Harvest is expected to happen in October and the company said it would freeze the harvested product.

The Hempire project received its first New York State Office of Cannabis Management (OCM) Audit at the Broome cultivation property. In a company statement, Australis said, “With only one minor observation, addressed already, Audacious passed the audit with flying colors. The authorities commented on the Hempire project being among the very best of those audited to date in terms of operations, SOPs and compliance.”

CEO Terry Booth said, “Initially entering the derivative market in NYS is a smart plan and I applaud the team in executing this strategy. Storage of derivatives is obviously safer considering the time lag between first harvest and the time to first sales anticipated we are faced with. It will also allow for high-quality products, eliminating the potential variables that come with outdoor grown cannabis flower.”

Mohawk Marijuana

The company also stated that products from the First American project will be sold on the Mohawk Indigenous Reserve. However, beyond stating that the project was licensed and underway, there was little additional detail.

Australis did say that its provisional license in New Jersey was in the process of being converted to a final license.

The plan in Massachusetts has changed slightly. Australis wrote, “While the original plans included a full indoor grow facility, Belle Fleur has opted to initially focus on concentrate-based products, which allows for the cannabis to be grown in lower cost greenhouse facilities. To this end, an application was made to the municipality where the facility is located to amend the original permit. The amendment was accepted by the municipality and the project is now cleared to progress. Groundwork for the facility is materially complete.”

Rolandy Romelus, Belle Fleur CEO, commented, “With this amendment approved, we are now well positioned to progress with our project and bring high-quality concentrates to the Massachusetts market. We look forward to continuing our partnership with AUDACIOUS, complete construction of our facility and serve our market with the high-quality products the Rapper Weed brand is synonymous with.”

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.

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