() () has acquired 2.9 million shares in US multi-state operator (), the group said in a release on Friday.

The Vancouver-based company acquired the shares through the conversion of unsecured debentures valued at $1.6 million at a price of C$0.55 per share.

Australis converted the debentures on July 1, 2020, as part of a July 2019 conversion agreement. The debentures were acquired in a private placement from November 2018.

READ: Australis Capital pleased with shareholder response to pending Passport Technology acquisition

In consideration for the conversion agreement, Body and Mind paid Australis $148,339.72 as an advanced payment of interest payable under the debentures for the period beginning November 2, 2018, and ending July 1, 2020.

Australis now holds approximately 18% of Body and Mind shares on an undiluted basis.

In a separate statement, Australis announced that it intends to vigorously defend itself against claims made by Green Therapeutics LLC and Meridian Companies LLC.

The group said its contention is that "the Plaintiffs' complaint of breach of contract is without merit and is an opportunistic ploy to reverse two separate and legitimate, closed deals in which Green Therapeutics sold to Australis certain cannabis licenses, brands, and other assets in exchange for common shares of Australis, and Meridian sold to Australis certain real property". 

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