The deal, announced on December 10, would have seen Folium become a wholly owned subsidiary.
Australis said in a statement Tuesday that it “discovered new relevant information with regard to Folium” and decided to reverse course.
"AUSA continues to lean heavily on corporate governance and our vision to navigate through an incredibly unpredictable market over the past 12 months," CEO Scott Dowty said in a statement. "With over $38.2 million in cash, liquid assets and other assets that can easily be converted into cash within a short amount of time and $5.2 million annual burn excluding charges from capital projects and one-time occurrence, AUSA has a very strong financial position.”
A stock halt was issued when the merger was announced, and trading is expected to resume on the CSE and OTC Markets shortly, the company said.
The company will host a conference call at 1 pm ET on February 26. The call can be accessed by dialing 1-888-396-8094 toll-free in North America or 1-416-764-8649 in Canada.
Australis, based in Las Vegas, invests in the highly fragmented, rapidly evolving US cannabis space, with a focus on building companies through early stage, diversified and opportunistic investments
Contact Andrew Kessel at [email protected]
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