Australis Capital increases position in US multi-state operator Body and Mind

() (OTCMKTS:AUSAF) announced Thursday that it has exercised 12.8 million share warrants of US multi-state-operator (), a dispensary operator and provider of cannabis products. 

Australis exercised the warrants at a price of C$0.50 for gross proceeds of C$6.4 million. The firm now holds about a 36% stake in of Body & Mind (BaM).

"We are pleased to exercise our remaining warrants in BaM," said CEO Scott Dowty. "By doing so, our ownership of BaM's issued and outstanding shares increases to 36%. Their improved balance sheet will allow BaM to expand its operations and further access accretive opportunities to increase shareholder value."

READ: Australis Capital expands Nevada presence in separate deals with Green Therapeutics and Meridian worth combined $11M in stock

Proceeds from the warrants were used, in part, to fully repay an outstanding senior secured note of US$4.5 million owed to Australis by BaM. 

Payment of the note included the principal amount of US $4,000,000 including accrued interest and an early repayment fee. The company noted the remaining warrant proceeds will be used for working capital purposes.

"This is a great transaction for both companies and our strategic partnership with Australis has provided BaM with tremendous opportunities as we grow our key platforms and quality lifestyle brand," said Robert Hasman, president of Nevada Medical Group and a director of BaM. "The expertise of the Australis management team combined with the Australis network is industry leading and will be invaluable as we focus our attention on strengthening our key franchises and expansion into new markets."

BaM operates a production operation in Nevada, as well as dispensaries in California and Ohio and soon, Arkansas. BaM products include dried flower, edibles, topicals, extracts as well as GPEN Gio cartridges.

Shares of Australis were up 1.3% C$1.13 in Canadian trading on Thursday.

Contact Katie Lewis at [email protected]