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Australis Capital acquiree ALPS strikes $2.5M agreement with Cann Group to help build Australian greenhouse
The agreement for the 363,000 square foot facility includes the installation of a computerized compliance and maintenance management system, APIS
() () (FRA:AC4) announced Tuesday its acquisition target ALPS inked an agreement with Cann Group Limited to deliver end-to-end design, construction and commissioning services for the latter’s planned Australian greenhouse.
The $2.5 million agreement for the 363,000 square foot facility includes the installation of a computerized compliance and maintenance management system, APIS, and an ongoing service contract, the company said in a statement.
ALPS is a leading design, construction management, commissioning and post commissioning consultancy company for horticultural crops. The company has been involved in cannabis projects across the globe with a total grow area in excess of 340 acres for a total cultivation capacity of around 2,000,000 kilograms of cannabis per year.
READ: Australis Capital unveils significant expansion moves with plans to acquire both Green Therapeutics and ALPS
"This is a significant contract for us in terms of size, and acknowledges the respect ALPS has garnered in the global cannabis space,” ALPS president Thomas Larssen said in a statement accompanying the news.
“It also marks the installation of our recently launched APIS offering. We are very pleased to sign this updated and revised agreement with Cann to continue to expand its footprint and revenue generating potential.”
ALPS also owns the well-known west coast cannabis brand Mr Natural.
Las Vegas-based Australis announced its intention to acquire 51% of ALPS in January 2021, with an option to purchase the remaining 49%. The company told shareholders at the time that the deal should be immediately accretive to the company's financial position.
"ALPS have developed an amazing network throughout both the cannabis and traditional horticulture industries,” Australis’ interim CEO Duke Fu said in a statement.
“As ALPS' innovative approach consistently delivers on quality, timing, low operational costs and yield, this has resulted in a steady flow of new projects. This contract with Cann confirms that ALPS truly is a global player in the cannabis industry.”
Fu added that the company is making good progress towards completing the acquisition of ALPS.
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