Australis Capital Inc. said it has agreed to acquire all the issued and outstanding membership interests in Nevada-based cannabis company Green Therapeutics LLC or GT.
Prior to completing the deal, the two companies agreed to settle a previously announced legal dispute related to the original May 2019 transaction under which Australis had acquired certain non-operational GT assets.
Australis said it will pay between C$9.5 million and C$10 million to the holders of the GT membership interests. The companies expect to complete the transaction in the first quarter of 2021.
GT, co-founded by former MedMen President Dr. Duke Fu, has a brand portfolio of high-end dried flower and luxury derivative products.
GT’s currently produces three brands. These include the high-end GT Flowers; Tsunami, a collection of hydrocarbon extraction-based luxury products that include live resins; and Provisions, a line of distillate-based designer products, such as accurate dosing oral spray.
GT operates an 8,000 square foot facility in Nevada and its brands are carried by 52 percent of Nevada-based dispensaries. The company also has a manufacturing license in Oklahoma and a 25 percent interest in an extraction and processing license in Missouri.
Separately, Australis Capital said it has agreed to acquire 51 percent of the issued and outstanding shares of ALPS, with an option to purchase the remaining 49 percent.
Australis said it will pay to the ALPS principals between $13.7 million to a maximum of $26.14 million for the 51 percent stake. The consideration will be paid based on various milestones and adjustments.
ALPS, formerly Aurora Larssen Projects, is a provider of design, construction management and post-commissioning services for horticultural facilities such as greenhouses, indoor, hoop house and outdoor facilities.
The companies expect to complete the transaction in the first quarter of 2021.
As a condition to completing the proposed transaction, Terry Booth, currently a principal of ALPS, will become CEO of Australis at closing. Booth is the co-founder and former CEO of Canadian cannabis company Aurora Cannabis Inc.
Booth will take over from Dr. Duke Fu, who has been serving as Interim CEO since mid-November 2020. Dr. Fu will assume the role of COO of the company.
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