Australis Capital Inc (CSE:AUSA, OTCQB:AUSAF), doing business as Audacious, announced that it has closed the sale of the ALPS assets by way of a definitive asset purchase agreement with CEAd Holdings Inc and affiliated parties, a group that includes ALPS president Thomas Larssen.
The cannabis medical services only (MSO) company said the purchasers will acquire all of the vendors' respective rights, title and interest in all of the assets, properties and rights in connection with the business of the vendors for a price of $6,251,400, consisting of $1 million in cash on the closing date, a secured promissory note in the amount of $4,277,572 bearing no interest for 90 days following the closing date and 7.5% per year thereafter, plus the assignment and assumption by the purchaser of certain accrued liabilities.
In addition to the purchase price, CEAd will provide a significant discount to market for the proposed New Jersey and New York cannabis facilities, which are subject to successful graduation of existing licences, according to the company.
“This is transformational for both companies,” Audacious CEO Terry Booth said in a statement.
READ: Audacious announces management changes
“For AUSA, the sale provides Audacious with an injection of cash for us to accelerate and further our projects in New York and New Jersey,” Booth added.
Audacious noted that under the terms of the agreement, the purchaser has assumed ownership of the operational assets of ALPS, Larssen GC and APIS.
It added that the companies have also signed a services agreement whereby Audacious will continue to have access to the services and intellectual property owned by CEAd, and Audacious will receive a significant discount with respect to engineering, design, construction and commissioning on its New York and New Jersey projects, with cost savings estimated at about $3 million.
As well, Audacious reported that it has appointed new auditors, BF Borgers CPA PC, which have begun the work of helping the company complete its filings.
Audacious said while this will cause some additional delay toward filing, management believes that its financial reporting is in good standing and in leveraging the work done to date, the company anticipates completing its required filings in the coming weeks.
Audacious is a next-generation MSO growing the cannabis industry of tomorrow from the ground up.
Contact Sean at sean@proactiveinvestors.com