Australis Capital (CSE: AUSA) has cancelled its previously proposed merger with that of Folium Biosciences as a result of new information it has discovered in relation to the company.
Under the previously announced merger that was to occur between the two firms, Australis was to effectively be acquired by Folium, with the resulting company remaining listed on the Canadian Securities Exchange. While a price tag was not previously placed on the transaction, the resulting company was to be comprised of 11% of Australis while the remainder was to be made up of Folium in what was described as a vertically integrated producer of non-psychoactive cannabinoids.
Further details were not provided on why specifically the transaction was terminated or what relevant information came to light after conducting due diligence.
With over $38.2 million in cash, liquid assets, and other assets that can easily be converted into cash within a short amount of time and $5.2 million annual burn excluding charges from capital projects and one-time occurrence, AUSA has a very strong financial position. With 18 months of operating experience behind us, we are excited about the future and eager to execute on our strategy starting with our corporate update on February 26, 2020.
Scott Dowty, CEO of AUSA
The company will be hosting a corporate update call on Wednesday, February 26, 2020 as a result of the terminated agreement to provide investors and shareholders with Australis’ go-forward strategy.
Australis Capital last traded at $0.45, however it has been halted since December 10 as a result of the previously proposed transaction with Folium Biosciences. The company expects its equity to return to trading shortly.
Information for this briefing was found via Sedar 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.
