GT is an award-winning, Nevada-based cannabis company with a strong brand portfolio of high-end dried flower and luxury derivative products
Australis Capital Inc (CSE:AUSA) (OTC:AUSAF) (FRA:AC4) announced Wednesday that it has completed the first stage of its previously announced acquisition of Nevada cannabis company Green Therapeutics LLC (GT), by purchasing one of its subsidiaries.
The subsidiary contains a number of unregulated assets, including the GT brands and certain ancillary agreements such as brand licensing and management agreements. Subsequently, the company will complete the acquisition of GT itself. In total, Australis will pay to the holders of the GT membership interests between C$8 million and C$10 million for 100% of the outstanding membership interests of both GT and the subsidiary.
GT is an award-winning, Nevada-based cannabis company with a strong brand portfolio of high-end dried flower and luxury derivative products. GT was co-founded by former MedMen president — and current Australis COO — Duke Fu and is led by a strong team of medical professionals and pharmaceutical manufacturing experts.
READ: Australis Capital finalizes definitive agreement to acquire cannabis company Green Therapeutics
"We continue to execute at a high pace and will be accelerating our growth, now that the first stage of the GT transaction is closed," CEO Terry Booth said in a statement. "... the GT team brings productive and valuable cannabis operations and assets, very deep connections in the Nevada cannabis industry and elsewhere, and access to a host of potential partnerships and transactions. The credibility that GT has built in the Nevada market and beyond is of great value as we continue to build a new type of [multi-state operator]. Leveraging our majority ownership of ALPS creates other unique opportunities to scale the GT brands and positions us exceptionally well to capitalize on the enormous opportunity in the US cannabis space."
Completion of the transaction marks the Australis’ entry into the US cannabis space as an operator, transitioning away from its previous identity as an investor, the company said. Australis believes that by being an active industry participant and executing on its novel expansion strategy, the company will be able to become a leader in the sector.
"Since taking over in late November, the new leadership team at AUSA has accomplished a lot and has made incredible progress,” Fu said. “However, this is just the beginning of our journey, and I look forward to working with Terry, Thomas and the entire AUSA team to execute on our expansion strategy and provide consumers across the US and beyond with access to our award-winning products."
GT currently operates three brands: Tsunami, a higher-end variety of exotic strains; Provisions, a line of edibles, tinctures, vapes and hardware; and GT Flowers, flower products with “exceptional potency and terpene profiles” for medical and adult use consumers.
The company 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.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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