Australis Capital Archives - Green Market Report

Kaitlin DomangueFebruary 19, 2020
daily_hit004.png?fit=1200%2C500&ssl=1

4min10440

It’s time for your Daily Hit of cannabis financial news for February 19th, 2020. 

On the Site

Cannabis Sustainability: Minimize Wastewater

Drought and water shortages are an expensive reality in some of the best cannabis-growing regions. As a result, water conservation practices help reduce water waste and overall operations costs, particularly for commercial grows.

Use Cannabis? Spotlight on Driving Unimpaired

The article went in-depth on what those who are pulled over with medical cannabis in Florida should do. Drivers must be able to produce a valid medical cannabis card. In other words, don’t leave your card at home. Drivers should also not drive with hemp/CBD without a certificate of analysis in the vehicle as well.

Zenabis to Produce Sparkling Beverages

Zenabis Global Inc. (TSX: ZENA)  announced details of its cannabis derivative product strategy and execution, including entering into an agreement with a Canadian beverage manufacturer to produce a range of cannabis-infused beverages.

The initial launch of cannabis-infused sparkling water beverages under the HYTN brand is listed with all Zenabis’ Provincial counterparties, with strong indicative demand. The first shipment of the initial four flavors of the cannabis-infused sparkling water beverages expected in Q2 2020.

Australis Kills Folium Deal

Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) terminated a proposed merger with Folium Equity Holding LLC and Folium Merger Sub, LLC.

Australis had sent warning signs that the company may not move forward with the deal in corporate meeting notes that surfaced on Google. In those notes, Dowty said, “It was concerning with the multiple lawsuits and all of the stuff on social media. After due diligence and getting to know the team at folium, we felt comfortable you know, with where they are going.”

Move Over Impossible Burger, The CBD Burger Is Next On The Menu

Even though the FDA has expressed its displeasure at adding CBD to food, that hasn’t stopped hamburger chains from tossing in some cannabidiol to enhance their burgers.

Carl’s Jr. became the first fast-food chain to sell a CBD burger for one day at one of its franchises in Denver, Colorado. That has sparked Colorado-based Illegal Burger to offer what it calls its biggest differentiator, “its exclusive line of CBD products.”

In Other News

TILT Holdings Revamps C-Suite

TILT Holdings has appointed interim CEO Mark Scatterday as the permanent CEO of the company. Tim Condor has been appointed as Chief Operating Officer, adding the title of President, effective immediately.

Tilray Stocks at a Low

Tilray (TLRY) has been one of the worst-performing stocks in the cannabis market in the last year. After their IPO price rising to $300 from $17, their luck ran dry and shares recently hit a low around $15. Estimates from analysts predict Tilray’s stock to fall.


Debra BorchardtFebruary 19, 2020
shutterstock_1021410481-scaled.jpg?fit=956%2C960&ssl=1

4min14080

Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) terminated a proposed merger with Folium Equity Holding LLC and Folium Merger Sub, LLC. At the time Folium would become a wholly-owned subsidiary of AUSA, and AUSA would be rebranded as and carry on the business of Folium. AUSA said that recently discovered new relevant information with regard to Folium caused the company to back out of the deal.

“AUSA continues to lean heavily on corporate governance and our vision to navigate through an incredibly unpredictable market over the past 12 months,” states Scott Dowty, CEO of AUSA. “With over $38.2 million in cash,  liquid assets, and other assets that can easily be converted into cash within a short amount of time and $5.2 million annual burn excluding charges from capital projects and one-time occurrence, AUSA has a very strong financial position. With 18 months of operating experience behind us, we are excited about the future and eager to execute on our strategy starting with our corporate update on February 26, 2020.”

A trading halt on AUSA stock was issued in accordance with the policies of the Canadian Stock Exchange at the time of the announcement of the proposed merger agreement. As the transaction will not proceed, trading is expected to resume on the CSE and OTC shortly.

Warning Signs

Australis had sent warning signs that the company may not move forward with the deal in corporate meeting notes that surfaced on Google. In those notes, Dowty said, “It was concerning with the multiple lawsuits and all of the stuff on social media. After due diligence and getting to know the team at folium, we felt comfortable you know, with where they are going.”

However, Dowty then said, “When we did the merger agreement, we now had the chance to do our audits and get into the details of the company. First chance to do corporate governance, make sure due diligence is right, etc. That’s where we are now. The last 2 months since the halt we have been able to get into the company, see real data (data people are telling us or giving us) and that’s where we are now with Folium. I can’t say much on this subject but there will be a corporate update on FEB 26th . We like CBD; however, the industry has changed, we have much more data now because we’ve been inside and there’s a corporate update on FEB 26th. Can’t tell you more than that, other than we have much more data, because we’ve been inside, the halt and because of that data there will be a corporate update.”

 


William SumnerMay 21, 2019
daily_hit004.png?fit=1200%2C500&ssl=1

5min11690

It’s time for your Daily Hit of cannabis financial news for May 21, 2019.

On the Site

New Regime Will Impact Aphria Stock

No one who follows Aphria Inc. (NYSE: APHA ) stock should have been surprised that the company’s president, Jakob Ripshtein, resigned on May 14. Ever since interim CEO Irwin Simon was appointed Independent Chair of Aphria’s board in December,  it was only a matter of time before Simon, the entrepreneurial founder and former CEO of Hain Celestial (NASDAQ: HAIN), would play a more prominent role at the Canadian cannabis company.

Australis Capital

Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) entered into an asset purchase agreement with Green Therapeutics, LLC and affiliated companies, to acquire its Tsunami, Provisions, and GT Flowers cannabis brands in a deal valued at $8 million. The deal is expected to close in late 2019.

In Other News

Innovative Industrial Properties

Innovative Industrial Properties, Inc. (NYSE: IIPR) announced that it had closed the acquisition of a property containing two buildings totaling approximately 266,000 square feet of industrial space for $13 million. IIP has also entered into a long-term, triple-net lease agreement with a subsidiary of Green Leaf Medical, LLC (Green Leaf Medical). Green Leaf Medical has already redeveloped roughly 103,000 square feet of the space for medical cannabis cultivation and processing.

Body and Mind

Body and Mind Inc. (CSE: BAMM) (OTC Pink: BMMJ) has closed a previously announced private placement offering. M Partners Inc. acted as lead agent on behalf of a syndicate of underwriters, which included PI Financial Corp. Body and Mind sold 11,780,904 units of the company at a price of C$1.25 per unit for gross proceeds of C$14.72 million. “The financing was originally planned for gross proceeds of up to CAD$10 million and we are extremely pleased with the increased interest which will allow us to accelerate our growth as a multi-state operator,” commented Body and Mind Director Robert Hasman.

48North

After the markets closed yesterday, 48North Cannabis Corp. (TSXV: NRTH) released its financial results for the three and nine month period on March 31, 2019. Revenue for the quarter was C$689,000 and C$4.3 million for the nine months period. EBITDA was C$78,000 for the quarter and C$696,000 for the nine month period. The net loss for the nine month period was C$3.3 million.

Medicine Man Technologies

Medicine Man Technologies, Inc. (OTCQX: MDCL) today announced the release of their financial results for the first quarter of 2019. Year-over-year, revenue grew by 63% to approximately $2 million. Driving much of this growth was an increase in product sales, which rose from $459,335 to $1.5 million. The net loss for the quarter was $2.9 million. “With the recent progress of HB19-1090 and the strong overall momentum within the cannabis industry, we came in this quarter with record revenues and strong sales from our products division,” said Andy Williams, Co-Founder and CEO of Medicine Man Technologies. “Looking ahead, we have several significant events that include our pending acquisitions of Medicine Man Denver and MedPharm Holdings, LLC, which will put us on a major growth trajectory and create compelling value add for our shareholders.”


Debra BorchardtMay 21, 2019
plant2.jpg?fit=960%2C640&ssl=1

3min19320

 Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) entered into an asset purchase agreement with Green Therapeutics, LLC and affiliated companies, to acquire its Tsunami, Provisions, and GT Flowers cannabis brands in a deal valued at $8 million. The deal is expected to close in late 2019.

In addition to the brands, Australis is also buying certain operating assets, intellectual property and the right 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, Nevada.

Australis said it will issue common stock to complete deal and 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 utilizing the acquired assets within specified timeframes per the definitive agreement.

“Green Therapeutics and Australis’ combined assets, expertise, and network positions our company for tremendous growth and is uniquely positioned with products spanning verticals where long term margins will be insulated,” said Scott Dowty, CEO of Australis. “Introducing Mr. Natural’s Veteran Affairs registered premium organic strains and proprietary cultivation methodologies to Nevada through a purpose-built facility will serve as the launching ground for a nationally recognized cannabis brand.”

In a separate transaction, Australis acquired from Meridian Companies LLC an 8.9-acre parcel of land in North Las Vegas in exchange for $2.93 of its common stock or 3,585,521 Australis common shares where the new cultivation and production facility will be located.

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 industry recognized Aurora Cannabis standard. The acquisition will include GT’s operating team. Australis expects the 55,000 square foot facility will generate approximately $10-12 million in EBITDA in its first full year of operations, respectively, resulting in an adjusted purchase price multiple of approximately 2.0 – 2.3x including the cost of the buildout of the new facility.

“We are excited to be working with Australis’ top tier management team and leveraging their strategic relationship with Aurora Cannabis,” said Dr. Duke Fu, CEO of Green Therapeutics. “This gives us a fantastic opportunity to scale our current brands inside and outside Nevada while maximizing Australis’ portfolio assets and vast cultivation experience.”


Don't Miss This Week's Exclusive News

Our team will cultivate the cannabis industry’s critical news and deliver it directly to your inbox every Friday. Don't miss it. Subscribe Now.

We respect your privacy. See our privacy policy.


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE


Back to Top