Australis Capital Inc. (OTCMKTS:AUSAF) Sued Over Cannabis License Acquisition From Green Therapeutics

Australis Capital Inc. (OTCMKTS:AUSAF) will defend itself strongly against Meridian Companies LLC and Green Therapeutics LLC’s lawsuit.

Australis sued for breach of contract

The plaintiffs served Australis on June 29, 2020, with a lawsuit that the company holds is without merit. Green Therapeutics is suing Australis for a breach of contract of deals that saw Green Therapeutics sell cannabis licenses, assets, and brands to Australis in exchange for its common stock. On the other hand, Meridian is suing over the real estate property it sold to Australis.

However, Australis is maintaining that the suit is an opportunistic ploy seeking to reverse two legitimate transactions. It is important to note that since October 2019, the State of Nevada has a moratorium on the transfer of cannabis license. As a result, Australis has been impacted as it has not been able to realize returns on the investment and has not sought relief or remuneration from the plaintiffs on the same.

Australis amends Passport Technology acquisition terms

Also, Australis Capital updated specific terms of the acquisition of Passport Technology Inc. to reflect more agreement by Passport following the announcement of the deal. The company amended the deal on June 25. It will now pay Passport $2 million in Australis shares and Body and Mind Inc. if the company generates revenue of more than $8.5 million in 2021.

Equally, Passport will receive an additional $2 million worth of Australis and Body and Mind shares if it attains more than $9.5 million. The company will also pay an earn-out of 25% of revenue to Passport in excess of $8.5 million should Passport’s EBITDA exceed $3 million.

Since the deal’s announcement, Passport has signed 16 more Gateway Casinos in Alberta and British Columbia. As per the deal, Passport expects to attain $12 million in 2021 and an operating income of $4 million. Australis CEO, Cleve Tzunga, stated that they are pleased with the progress Passport has made, and they are ready to back that with amended terms. 

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