Australis Capital Inc (CSE:AUSA) (OTCMKTS:AUSAF) (FRA:AC4) provided an operations update on its pending acquisitions of Green Therapeutics LLC and ALPS, as part of its shift from an investment company into a US multi-state operator (MSO).
Australis said Green Therapeutics (GT) saw a record 47% year-over-year increase in December sales, and recently reached an agreement to sell its land in North Las Vegas, which would result in AUSA receiving approximately US$1.95 million if the transaction is completed.
Meanwhile ALPS, through its wholly-owned subsidiary Larssen Greenhouse Consulting (LGC), has executed a number of contracts for the development of facilities for the cultivation of high-quality, low-cost crops such as fruits, vegetables and microgreens.
READ: Australis Capital unveils significant expansion moves with plans to acquire both Green Therapeutics and ALPS
“The new board is rapidly changing AUSA from an ‘investment’ company into a multi-state operator with expected meaningful revenue growth, resulting in profitable operations,” Australis Capital CEO designate Terry Booth said in a statement.
He added: “The ALPS and GT deals are progressing very well. The newly appointed and highly motivated management team is executing to capitalize on the enormous opportunity in the US cannabis market, and looks forward to continuing its high-frequency dialogue with shareholders and other stakeholders as AUSA moves to the next level.”
Terry Booth, co-founder of Aurora Cannabis, will become the new CEO of Australis Capital following the completion of the ALPS transaction.
Australis Capital interim CEO Duke Fu also weighed in, stating: “While our main focus is on the cannabis industry, we anticipate that ALPS' ability to drive growth in the traditional horticulture sector will create a secure and diversified revenue stream for AUSA.”
He added: “We expect that the profitable nature of these operations will generate cash flows that will help fuel AUSA's MSO expansion across multiple states as transactions close.”
ALPS is a design, construction management, commissioning and post commissioning consultancy company for horticultural crops, such as cannabis, fruits, vegetables, mushrooms and algae.
Australis noted that since its management buyout from Aurora Cannabis, ALPS has developed a rapidly-growing pipeline of business, with LGC signing new contracts and anticipating converting on multiple opportunities currently under negotiation, including recently being engaged by Vertical Harvest for the engineering and design of a four-story, urban greenhouse for the cultivation of microgreens, leafy greens and lettuce.
Green Therapeutics LLC, meanwhile, is an award-winning MSO with operations in Nevada, Missouri, and Oklahoma.
Australis also noted that it has made “significant” progress in right sizing the organization and reducing its operational burn rate.
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