Australis Capital Inc, doing business as Audacious, told investors it has reduced its shareholding in Body and Mind to below 10% after selling a portion of its holding in a private agreement transaction.
The company said ceasing to be an insider of Body and Mind provides it with increased flexibility around US affiliate rules. It continues to assess the strategic fit of certain of its legacy holdings, it added.
Australis said it sold 9.9 million restricted Body and Mind shares to a private purchaser for $2.97 million. The number of Body and Mind shares sold represents 9.8% of the shares of Body and Mind and 54.7% of its own Body and Mind shareholding. After the sale, it continues to hold 8,206,549 Body and Mind shares, or 8% of the company’s outstanding shares.
READ: Australis Capital sees 1Q revenue soar on full quarter of ALPS results, Green Therapeutics-related management fee
"As one of the early investors in Body and Mind, we are pleased with the growth of the company, disciplined management, and continued brand and licence expansion across limited licence markets and jurisdictions," CEO Terry Booth said in a statement.
"We see opportunities for both companies to work together, and will assess these in view of our reduced holding, which now provides us with additional flexibility."
Australis said it takes a long-term view of its investment and, depending on market conditions and other factors, may acquire additional securities of the company, whether in open market purchases, privately negotiated transactions or otherwise. It said it also may dispose of some or all of such securities.
Australis Capital aims to build companies through early-stage, opportunistic, and diversified investments in the cannabis value chain in the US and abroad.
Contact the author at stephen.gunnion@proactiveinvestors.com