RE:RE:RE:AUSA Website From Website:
March 15, 2024
Australis Capital Inc. (CSE: AUSA, OTC: AUSAF), also known as Audacious, is pleased to provide the following corporate update.
New York State:
We are delighted to announce that Hempire Farms is on track to be granted its full cultivation license in the State of New York. This development positions Australis Capital Inc. to capitalize on the emerging and highly promising New York market. We are excited about the potential growth opportunities that this license will bring, further enhancing our future market presence and revenue streams.
AUSA acquired the Mr. Natural Brand in 2018. The company is negotiating a brand usage contract with Bob Luciano (AKA Mr. Natural). Mr. Luciano has taken the first steps in securing a retail license in the state of New York. A Vietnam War veteran, Mr. Natural will bring his slate of award-winning products to the New York market. Terry Booth commented, “There is no question that Bob is a legend in the cannabis world. He was already an experienced cultivator when he took home the first-ever High Times Cannabis Cup. We are looking forward to Bob being front and center of the Mr. Natural Brand in New York State. His advocacy work for veterans’ rights has been stellar and unrelenting. Cali Gold, OG Kush, and Skywalker are among the iconic cultivars in the Mr. Natural suite of products.”
ALPS:
AUSA has made progress in the completion of the sale of the ALPS assets. AUSA has thus far received payments of $1,799,500. Past due interest-bearing payments alone as of February 21, 2024, stand at $550,500. AUSA has been making best efforts via discussions with CEAD to receive past due payments and the final payment due from the deal by April 15, 2024.
Financial Audit Update
In August 2023, BF Borgers CPA PC (Borgers), the audit firm engaged by AUSA, informed AUSA that the audit of the financial statements for fiscal 2022 and fiscal 2023 was remarkably close to completion. However, the audit was not completed as communicated, and further delays were not anticipated. On November 28, 2023, Borgers informed AUSA that they would not be able to complete the audit, citing internal resource issues. Then, on December 28, 2023, AUSA learned from Invictus (AUSA’s audit management contractor) that Borgers had been banned by the Canadian Public Accountability Board (CPAB) from accepting new clients and from completing any audits of Canadian public companies, including ongoing audits. Further details were reported by Canadian Accountant.
https://www.canadian-accountant.com/content/practice/cpab-censures-borgers
Terry Booth, CEO, commented, “To be crystal clear, CPAB’s censure on Borgers had nothing to do with AUSA or AUSA’s audit. I sympathize with our shareholders. It is beyond frustrating, beyond disappointing, and beyond unlucky that we are here again.” AUSA is now faced with the task of engaging another audit firm to complete the audit to allow the filing of financials and the necessary steps to resume trading. Booth added, “Invictus has lined up a major Canadian accounting firm to step in at a very crucial time to complete the 2022, 2023, and likely the 2024 fiscal year-end audits”. An engagement letter is expected to be signed in the coming weeks pending payments that are past due to AUSA from the ALP’s transaction.”
SubTerra:
In September of 2018 Aurora Cannabis Inc. completed a series of intercorporate transactions in connection with the spin-out of Australis Capital inc. including the SubTerra LLC Michigan land transfer which required a payment to AUSA of $150,000 annually during the period commencing June 1, 2018 and ending May 31, 2028 AUSA have been in discussions with SubTerra over the last 6 months which includes the full amount outstanding of $1,300,000 being paid with a target date on or before April 30, 2024.
As part of the spin out in 2018 Aurora and Australis entered into the Funding Agreement that included an advance of $500,000 to Australis, in consideration for which Australis issued to Aurora: (a) a warrant to purchase a number of Shares equal to 20% of the issued and outstanding Shares as of the date on which the Shares commence trading on the CSE, which will be exercisable for a period of ten years from the date of issue at an exercise price of $0.20 per Share, and (b) a warrant to purchase a number of Shares equal to 20% of the number of Shares issued and outstanding as of the date of exercise, which will be exercisable for a period of ten years from the date of issue at an exercise price equal to the five day volume weighted average trading price of the Shares on the CSE. (collectively, the “Restricted Back-in Right”)
About Australis
Australis is a cannabis company operating in the US cannabis sector led by industry pioneer Terry Booth and an accomplished management team with proven industry track records.