Australis Capital (CSE: AUSA) has publicly responded to the previously announced lawsuits from Green Therapeutics and Meridian Companies for breach of contract. Unsurprisingly, Australis has indicated that it intends to defend the lawsuits vigorously.
The response is to a lawsuit served on June 29 by the two firms, whom allege that Australis has breached its contract in relation to a purchase agreement signed in May 2019, with Australis agreeing to acquire certain assets and property from the two firms. The claim is that the sale of assets was predicated on the build out of a cultivation and manufacturing facility in Nevada, a plan which has now been scrapped by Australis.
Within the response, Australis states that the lawsuit is without merit and is an “opportunistic ploy to reverse two separate and legitimate, closed deals.” Further, Australis indicates that the licenses have not been transferred to Australis for the operating assets as a result of a moratorium placed on the transfer of licenses by the state in October 2019. Australis states that this has negatively impacted its ability to realize returns on its investment, and that it has not sought remuneration or relief from Green Therapeutics or Meridian.
However, it should be identified that the lack of a license transfer will, in fact, make it easier for a rescission of the contracts to occur as there is less regulatory hurdles in this regard. It also indicates that the transaction may not be viewed as being “closed deals,” despite Australis calling it such.
Australis Capital last traded at $0.20 on the CSE.
Information for this briefing was found via Sedar, Green Therapeutics, and Australis Capital Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
