The deal is Audacious’s first entry into the CBD beverages category, which is estimated to reach $14.6 billion globally by 2026
Australis Capital Inc (CSE:AUSA) (OTCMKTS:AUSAF), which is doing business as Audacious, has announced that it is acquiring California cannabinoid beverages and edibles firm Gary Maverick Inc, which operates as LOOS, in an all-stock deal.
It is Las Vegas-based Audacious’s first entry into the CBD beverages category, which is estimated to reach nearly $1.4 billion in value in the US by 2023, and $14.6 billion globally by 2026.
LOOS sells a two-ounce drink (or shot) infused with 100mg of THC, in three flavors: Orange Crush Sativa, Green Dream Hybrid, and Lavender Indica. It also plans to release a number of other products across several key categories, including CBD-infused shots, shortly, according to Audacious.
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As part of the acquisition, LOOS founders Anthony Bendana and Ben Koppel will join Audacious in executive roles.
Audacious chief business development officer Leah Baily called LOOS a “fresh and exciting” brand that offers a “unique” user experience.
“The deal is structured to ensure full alignment with AUSA shareholder interests, and we anticipate the LOOS transaction to become accretive rapidly,” Bailey said in a statement.
CEO Terry Booth told shareholders that the CBD-infused drinks market may become one of the most important product categories in the industry.
"Launching a logistics-light SKU into the beverage market, I have always believed, will make all the difference in accelerating sales in this category … Acquiring LOOS and the team behind the brand gives us a head start and adds another product and revenue-generating line to our portfolio. as well as sees Audacious increasing our presence in California," Booth said.
He added that the company is excited about the progression of further deals in California that are in the “late negotiation” stage.
“Navigating the path to profitability in California will be of paramount importance, and other transactions that are in the late negotiation stage will further this objective, as well as position us to generate further shareholder value and confidence,” the CEO said.
Audacious also has assets in Massachusetts, Arizona, Nevada, Washington, Michigan, Missouri, and Oklahoma.
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