LAS VEGAS, Nov. 5, 2018 /CNW/ – Australis Capital Inc. (CSE: AUSA) (“Australis” or the “Company”) is pleased to announce that the Company has completed its previously announced investment in Body and Mind Inc. (CSE: BAMM, US OTC: BMMJ) (“BaM”) and acquisition of Rthm Technologies, Inc. (“Rthm”).
BaM is a publicly-traded company with numerous years of experience as one of Nevada’s first medical cultivators, producers and brands. BaM has recently expanded into Ohio and invests in high quality medical, recreational cannabis cultivation and production and retail. Pursuant to the terms of its investment, Australis acquired (i) 16,000,000 units of BAM, each comprised of one common share and one common share purchase warrant, at a purchase price of $0.40 per unit for $6,400,000, and (ii) $1,600,000 principal amount 8% unsecured convertible debentures of BaM maturing two years following the date of issue.
Rthm is a private company that has developed a complete suite of proprietary technology including advanced heart rate tracking and analysis algorithms and comprehensive circadian rhythm mapping techniques, which is among the most advanced digital health platforms in the world. Pursuant to the terms of the Rthm acquisition, the Company has paid the following consideration to the shareholders of Rthm: (a) CAD $800,000 in cash payments, (b) an aggregate of 1,742,611 common shares of Australis, and (c) and aggregate of CAD $200,000 in promissory notes, which become payable upon certain patents being granted to Rthm. In addition, the Company will issue common shares of Australis to the shareholders of Rthm with an aggregate value of CAD $1,250,000 upon the achievement of certain milestones.
For additional information relating to the Rthm and BaM transactions, please see the Company’s news releases dated October 29th and 30th, 2018, respectively.
About Australis Capital Inc.
Australis Capital identifies and invests in the cannabis industry predominately in the United States, a highly regulated, fragmented, rapidly expanding and evolving industry. Investments may include and are not limited to equity, debt or other securities of both public and private companies, financings in exchange for royalties or other distribution streams, and control stake acquisitions. Australis Capital adheres to stringent investment criteria and will focus on significant near and mid-term high-quality opportunities with strong return potentials while maintaining a steadfast commitment to governance and community. Australis Capital’s Board, Management and Advisory Committee members have material experience with, and knowledge of, the cannabis space in the U.S., extensive backgrounds in highly regulated industries, adherence to stringent regulatory compliance, public company and operational expertise. Australis’ operating and portfolio assets to date include Rthm Technologies Inc., and Body and Mind Inc.
Australis’ Common shares trade on the CSE under the symbol “AUSA”.
For further information about Australis, please visit the website at ausa-corp.com or contact the Company by e-mail at email@example.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Chief Executive Officer
Forward-Looking Information Statement
This news release contains statements and information that, to the extent that they are not historical fact, constitute “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company’s management to predict all of such factors and to assess in advance the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The Company does not undertake any obligation to update any forward-looking information to reflect information, events, results, circumstances or otherwise after the date hereof or to reflect the occurrence of unanticipated events, except as required by law including securities laws.
The CSE has in no way passed upon the merits of the Transaction and has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Australis Capital Inc.
For more information, please contact
Michael J. Carlotti, Chief Financial Officer, IR@ausa-corp.com