Australis Capital Inc (CSE:AUSA, OTCQB:AUSAF), which is doing business as Audacious, announced it has struck an agreement with Hempire Farms LLC, a New York based cannabis company with a license to cultivate, process and distribute cannabis products in the New York State recreational market.
New York’s recreational cannabis market is expected to reach around $4.2 billion over the next couple of years, according to estimates.
Audacious and Hempire plans to start planting its first batch of adult use cannabis towards the end of June 2022, with first harvest anticipated some around eight to 10 weeks later, according to a release.
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The agreement is contingent upon state approval, Audacious said in a statement.
Under current regulations, Audacious is allowed to have one acre of canopy, which equates to approximately 1.5 acres in total space, which is expected to yield approximately 2,100 pounds of dried flower and trim.
The intent is for product to be sold through the first batch of adult use dispensaries, Audacious said, with approximately 150 retail licenses to be awarded to social equity applicants.
The operations will be located in Broome County, New York.
Audacious CEO Terry Booth called the agreement a “truly transformational deal.”
"We promised our investors we would focus on the east coast, and now our hard work has come to fruition,” Booth said in a statement. With both New York State and New Jersey State licenses in place, this deal makes AUDACIOUS one of, if not the best positioned MSO to capitalize on the massive opportunity presented by the East Coast cannabis market.”
Expanding footprint in New York
The partnership with Hempire is the company’s second project in New York State. Work has also begun at the project with its partner First Americans of the Saint Regis Mohawk Tribe, Audacious said.
“This (New York State) license, combined with the First Americans project, enables entry into this nascent market before adult use is opened up for general license application, giving us a substantial early mover advantage that we are well set up for to execute on,” Booth told investors.
David Seamans, co-founder of Hempire, added: “The operational excellence at Audacious brings a broad range of experience, from financing, through to cultivation design, crop consulting, manufacturing, recognized brands and logistics. These were all crucial elements in us selecting AUDACIOUS as our partner in capitalizing on a huge opportunity for hemp farmers in New York.”
Audacious is a Las Vegas-based US multistate operator.
Contact Angela at angela@proactiveinvestors.com
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