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) (OTCMKTS:AUSAF) (FRA:AC4) said Friday it had executed a definitive agreement to acquire Nevada-based cannabis company Green Therapeutics LLC.
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.
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.
READ: Australis Capital unveils significant expansion moves with plans to acquire both Green Therapeutics and ALPS
Australis said the transaction, once completed, will be immediately accretive to its results as the current Nevada assets - which are the subject of the settled legal dispute - are non-operational. It is anticipated that GT's brands will be scaled up across multiple US jurisdictions.
According to a statement Friday, the transaction will be completed in two parts: the first being the acquisition of a subsidiary of GT containing a number of unregulated assets including the GT brands and certain ancillary agreements, including brand licensing and management agreements. Following that, Australis will complete the acquisition of GT itself.
The parties have also agreed to settle a previously announced legal dispute which will be formally discharged contemporaneously with the initial closing, expected later this month.
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.
"Entering this definitive agreement to acquire GT marks another kept promise to our shareholders," said Australis CEO Terry Booth in a statement.
"With its award-winning brands, excellent operational team and assets across three states currently, combined with the leverage ALPS brings to secure novel streaming agreements, we are positioned exceptionally well to execute on our expansion strategy and develop AUSA into a top-tier MSO. The structure of the transaction aligns the GT principals with the AUSA shareholders' interests, and we look forward to communicating with our shareholders frequently on our progress as we execute."
Duke Fu, co-founder of GT and AUSA COO, added: "Executing on the transaction with AUSA brings us the network, capacity and capital markets access to fuel our growth across the nation. We are working on a number of exciting growth initiatives that we expect to execute on following closing of the transaction.”
Contact Angela at angela@proactiveinvestors.com
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