Australis Capital Inc (CSE:AUSA, OTCQB:AUSAF), doing business as Audacious, announced a new partnership with First Americans LLC of the Saint Regis Mohawk Tribe in New York State to develop and operate a cannabis operation on tribal land.
The partnership will be responsible for cultivation, processing and manufacturing facilities, as well as two retail dispensaries, on tribal land.
In a statement, Las Vegas-based Audacious told shareholders that the partnership creates early-mover advantage in the state, which boasts a population of 20 million.
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For Audacious, the deal represents its first move into the New York cannabis market.
CEO Terry Booth told investors that the state represents “a truly enormous opportunity”.
"This deal expedites adult usage sales in New York State,” Booth said. “With the statewide start of adult use sales not expected to commence for at least another 18 months, this partnership creates an incredible early-mover advantage that we and our First Americans partners will look to capitalize on."
New York’s cannabis industry is expected to reach around $3 billion per year within the first few years of legalization, according to market research firm Headset.
"With a casino right opposite our first planned dispensary, which already hosts more than two million visitors per year, we anticipate attracting a sizable amount of the canna-tourism that this will attract. This makes for a project with great potential," said Leah Bailey, chief business development officer of Audacious.
The team will develop an "Achieve12" cultivation facility that will produce more than 10,000 pounds of dried flower per year, including processing and manufacturing of derivatives. Audacious will provide a customized design along with multiple services that allow operators to maximize yield and quality while minimizing inputs and resources.
First Americans will bring “deep retail experience”, accoding to Audacious. The group currently runs multiple stores, including convenience, liquor and others.
"Teaming up with the Audacious team, including ALPS, brings crucial experience in the cannabis industry that we believe will provide us with very significant competitive advantages in this market," said Rick Hamelin, president of First Americans.
Audacious is building a US multistate operator (MSO) with a footprint across the country.
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