The supply agreement will enable Audacious Brands to continue to expand its MSO footprint, which now includes Nevada, Arizona, Oklahoma, Missouri, Washington, and Massachusetts
Australis Capital Inc. (CSE:AUSA) (OTCMKTS:AUSAF) has announced a supply agreement and, through its majority-owned subsidiary ALPS, a facility engineering and design services contract with Belle Fleur Holdings LLC.
The Nevada-based company, which now operates under the name Audacious Brands, said under the supply agreement Belle Fleur will dedicate a certain percentage of its canopy space for the cultivation of its proprietary cultivars under a cost-plus 5% agreement. The companies have agreed to jointly explore opportunities for brand collaboration and further expansion in the US.
READ: Australis Capital to change name to Audacious Brand and finalizes land purchase in Nevada
The supply agreement will enable Audacious Brands to continue to expand its multi-state operator (MSO) footprint, which now includes Nevada, Arizona, Oklahoma, Missouri, Washington, and Massachusetts. It anticipates entering additional US markets within the next few weeks.
“This arrangement completely validates our strategy and is a great example of how synergies between AUSA/ALPS and our partners Rapper Weed create a win-win-win situation for everyone involved, while creating shareholder value,” Audacious CEO Terry Booth said in a statement.
“Our ownership of ALPS, the premier facility design firm in the business, is enabling us to execute on a strategy that is unique and very difficult to imitate. This strategy also de-risks our expansion as we do not have to deploy significant capital to develop cultivation infrastructure, while securing long-term access to low-cost, high-quality cannabis to fuel the expansion of our brands across the US," he added.
Belle Fleur, founded by the powerhouse cannabis and music industry entrepreneurs behind Californian brand Rapper Weed, Rolandy Romelus, Irvin Whitlow and Domenico Cardarelli, are the holders of a license allowing the development of a Tier 11 high-tech indoor grow facility in Blandford, a town in Hampden County, Massachusetts.
The Tier 11 license, the largest cultivation license tier available in Massachusetts, allows for up to 100,000 square feet of canopy space.
Belle Fleur, through its roots in the California legacy market, has access to ultra-premium genetics not currently available in Massachusetts and intends to serve the market with luxury, premium high-end cannabis products.
Rapper Weed was founded in Los Angeles, California. The brand’s core values consist of growing and manufacturing luxury high-end premium products 100% of the time.
Contact the author at stephen.gunnion@proactiveinvestors.com