LAS VEGAS, Sept. 3, 2020 /CNW/ - Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) ("AUSA" or the "Company") today announced it has reached a settlement agreement (the "Settlement Agreement") with Passport Technology Inc. ("Passport") in respect of the termination of the share purchase agreement (the "Share Purchase Agreement") pursuant to which the Company was to have acquired Passport. The Company also announced the departure of Executive Chairman Scott Dowty.
Under the terms of the Settlement Agreement, all obligations and entitlements of the parties, including all claims of any kind relating to the Share Purchase Agreement or its termination are fully and finally settled. AUSA will retain all fees generated from its customers, which were partially shared with Passport, and these fees will remain solely within its subsidiary Cocoon Technology LLC ("Cocoon"), while Passport acquires the Company's full interest in Paytron, LLC. The license agreement between AUSA and Passport and its deliverables relating to Cocoon remains in place. No cash payments, including the break fee, will be exchanged resulting from the termination of the proposed acquisition.
Mr. Dowty has resigned from the Board of Directors and departed from his position as Executive Chairman. Under the mutually agreed terms of his departure, Mr. Dowty has agreed to forgo all cash severance and to surrender his unvested stock options. Mr. Dowty will retain his previously awarded Restricted Share Units and AUSA will issue 4.25 million common shares of the Company to him.
"We are pleased to have reached an amicable settlement agreement with both Passport and Mr. Dowty," said Cleve Tzung, CEO of AUSA. "This settlement represents a fair and reasonable resolution between AUSA and Passport, and an equitable separation between the Company and Scott."
As previously announced, the Company is in the process of reviewing its strategic focus, the composition of its Board of Directors and executive management and expects to announce further changes prior to the AGM. With today's settlement, the Company is making a clean break with its recent past and getting back to its roots in U.S. Cannabis.
About Australis Capital Inc.
AUSA invests in, operates and builds differentiated companies primarily in the cannabis industry. AUSA focuses on significant near and mid-term opportunities with strong return potentials. AUSA's assets include Cocoon Technology, a cloud-based, self-service point of sale kiosk designed for cannabis dispensaries and other highly-regulated industries. The purpose-built platform features data analytics, privacy, security and regulatory compliance to drive enhanced consumer experience and generate incremental revenue for dispensary owners. AUSA's holds investments in Body and Mind Inc., Quality Green, and Folium Biosciences.