Australis Capital Inc C.AUSA

Alternate Symbol(s): AUSAF

Healthcare

Australis Capital Inc. is a multi-state operator in the cannabis industry in the United States. The Company is involved in the cannabis and horticultural industries in the United States and abroad. It is focused on brands and cannabis licenses in states with favorable economics. The Company also operates an engineering consulting firm. The Company advises on greenhouse design, build and operations throughout the world in cannabis and horticulture. Its operations range from providing sustainable cultivation design and optimization to retail storefronts, growing flowers in-house, and manufacturing brand, AUDACIOUS has products and solutions for everyone.

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Australis Capital Inc > FAILURES OF CURRENT MANAGEMENT

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Post by chipper63on Oct 28, 2020 9:02am

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Post# 31794464

FAILURES OF CURRENT MANAGEMENT

ncumbent Board and Management Failures	Cost to Shareholders
Rythm Technologies Inc.	$2 million in cash and stock paid to acquire a digital health platform that has generated $0 revenue for Australis and does not fit with the core cannabis business.
Wagner Dimas Inc.	$1.9 million invested in a cannabis pre-roll technology that was never deployed by Australis and was eventually sold at a loss.
Quality Green Inc.	$2.0 million invested into the failed going public transaction of Quality Green Inc., a fledgling Canadian licensed producer with no strategic value to Australis.
Folium Biosciences	Recklessly dove headfirst into a $4.0 million investment and eventual proposed acquisition without conducting proper due diligence. Resulted in halted trading of Australis common shares for 3 months and a loss of over $1.2 million to Australis in fruitless transaction costs.
Green Therapeutics	Sold shareholders on a plan to build out infrastructure and brands in Nevada but failed to do anything meaningful with the assets acquired. A wasted opportunity. Fumbled the execution and wasted millions of dollars in resources.
ASTOUND Group (Marketing Agreement)	~US$4.2 million paid, including through a transfer in Body and Mind Inc. stock, ~US$105,000 in services rendered. Subject to a make whole payment of $1.98 million in November 2020.
Passport Technology Inc.	Issued 4.25 million common shares to former CEO after transaction was terminated by Passport despite agreement calling for Passport to pay a break fee and reimburse Australis for its expenses incurred. $5.4 million initial consideration paid to Passport to license the technology for Cocoon. Issued top-up payment of 1.8 million shares of BaM to Passport for make whole obligations. The net result has been one deployment in a lone dispensary in Nevada.
Deterioration in share price and cash reserves	When DeMott joined Australis it had a share price of $1.02 and $24.5 million of cash on its balance sheet. The shares are now trading at $0.15 and the cash position has dwindled down by almost half to $13.3 million. What do DeMott and Swainson have to show for the over $11 million of shareholders' cash they've spent?