Australis to acquire Green Therapeutics LLC
Acquisition agreement includes resolution of litigation by unwinding original transaction.
LAS VEGAS — Australis Capital Inc. announced on Jan. 6 that the Company has entered into a non-binding term sheet dated January 4, 2020 with Green Therapeutics LLC and the holders of the issued and outstanding membership interests of GT setting forth the terms of a proposed transaction pursuant to which Australis will purchase 100% of the issued and outstanding membership interests in GT. Prior to completing the acquisition, the parties have agreed to settle a previously announced legal dispute regarding the original May 2019 transaction whereby AUSA had acquired certain non-operational GT assets.
GT 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.
“This is a transformational and immediately accretive transaction, operationalizing AUSA in multiple states with award-winning brands,” stated AUSA director Hanoz Kapadia. “With the GT litigation behind us, we can put more muscle behind their designer brands, scale up across the U.S. and transform AUSA into a high-quality multi state operator. We anticipate that other transactions we are negotiating will generate strong strategic synergies with our GT assets, create hard to emulate competitive advantages, and help propel AUSA to the next level.”
AUSA will pay to the holders of the GT membership interests between C$9.5 million and C$10 million for 100% of the outstanding GT membership interests. The parties anticipate completing the definitive agreements within the next 30 days, and anticipate that the transaction will be completed in the first quarter of 2021.