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Australis Capital says it has further sold-down holding of Body and Mind shares
Body and Mind operates a cannabis production operation in Nevada, as well as dispensaries
(CSE AUSA) (OTCPINK AUSAF) announced Wednesday that it has now sold down its holding in by a total of around 5.9 million shares.
Australis, which was spun out from cannabis behemoth Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) in September 2018 as its US investment vehicle, was an early investor in Body and Mind which operates a cannabis production operation in Nevada, as well as dispensaries, and its products include dried flower, edibles, topicals, extracts as well as GPEN Gio cartridges.
READ: Australis Capital acquires payment provider Paytron in US$120K stock deal
On December 24, 2019, Australis disposed of 5.0 million Body and Mind shares following a vendor agreement between Australis and RAPIDCASH ATM Ltd. The company said the share deal formed part of the consideration payable for the purchase of self-service kiosks for the global cannabis dispensary market from RAPIDCASH.
The current jewel in Australis Capital’s portfolio is Cocoon Technology LLC, which manufactures consumer-facing kiosks as stand-alone units or multi-unit pods for consumers.
The company said the Body and Mind shares were transferred by Australis in consideration for the kiosks at a deemed price of $0.55 each for a total consideration of $2,750,000.
In Wednesday's statement, it stated that since then, through transactions this year - dated February 25, March 3, March 10, March 17, March 24, March 31, and April 1 - Australis has now sold around 877,500 Body & Mind shares for nearly $272,294.09 at an average price of $0.31 per share.
The company said that after the sales, Australis holds 18,996,128 Body and Mind shares and debentures in the principal amount of $1,600,000. Assuming conversion of all debentures, Australis still holds around 20.9% of the issued and outstanding shares of Body and Mind on a partially diluted basis and approximately 18.7% of the issued and outstanding shares on an undiluted basis.
Following a conversion agreement dated July 1, 2019, Australis agreed to convert the Body and Mind debentures into 2,909,091 shares on July 1, 2020.
Contact the author Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive