- Australis shareholders who are supportive of Board change are encouraged to contact
Laurel Hill Advisory Group at 1-877-452-7184, or assistance@laurelhill.com to register their support.
The mandate of Australis has always been the pursuit of cannabis opportunities in
THE
Since the inception of Australis, the
A VISION FOR AUSTRALIS
There is ample opportunity for growth in the
Our vision is to build Australis into a branded products and cannabis technology company. We intend to achieve this vision by using Australis' existing investment in
Critical to the success of our strategy is a capital-light approach, that leverages technology and brands to create partnerships that maximize existing infrastructure. Superior cannabis growth and processing technology and sought-after brands will be key to gaining exposure to new markets without having to acquire costly licenses or build expensive facilities. Under the leadership of the Concerned Shareholder board nominees (the "Concerned Shareholder Nominees"), Australis will pursue this strategy by growing its current cannabis asset base into an integrated national cannabis company.
MAXIMIZING EXISTING ASSETS
The Current Board's inability to develop the Company's high quality assets, does not reduce their value to serve as a launch pad for future growth for a competent leadership team. Through the acquisition of GT's premier cannabis brands, licenses, and real estate, Australis has an underutilised beachhead into the highly lucrative
SYNERGISTIC ASSETS
In pursuit of a capital light, low cost multi-state strategy, the Concerned Shareholders are also well-positioned to grow Australis by acquiring new technologies, intellectual property and cannabis infrastructure, among other opportunities, and leveraging those assets to solve problems, address untapped niches, and create value along the way. After extensive research and advanced negotiations, the Concerned Shareholders have identified several acquisition targets which are synergistic to Australis' existing cannabis footprint. These targets allow for growth in new markets, augment the value of the Company's existing assets and have business models which are inherently capital light, high margin and poised to exhibit high growth:
- Target #1 - Processing Technology: proprietary technology solution enabling cost savings right at the intersection of cultivation and extraction by allowing large quantities of biomass to be processed into extracts without trimming or drying.
- Target #2- Cultivation Technology: state-of-the-art experienced cultivation facility engineering, design and technology provider with a proven track record of enabling the cultivation of low-cost high-quality cannabis at scale. The specific technology involves a proprietary supervisory control and data acquisition SaaS product for automating and optimizing cannabis cultivation facilities.
- Target #3 - Cannabis Infrastructure: extraction, product manufacturing, distribution and branding capabilities in markets that are complementary to Australis' existing footprint such as
Nevada ,Colorado ,California , andOregon . Ultimately the company will also be laser focused on the easternUnited States as the adult usage market develops in states likePennsylvania ,New York ,New Jersey andFlorida . - Target #4 - Cannabis Licenses: cannabis licenses permitting cultivation, extraction, and retail in states such as
Nevada ,Oklahoma ,Missouri , andMichigan . These license opportunities can either be acquired outright by Australis or monetized using other forms of partnership arrangements such as profit-sharing joint ventures.
These acquisitions and other steps in line with a value-add capital light strategy will allow Australis to secure inexpensive biomass from existing and new client grow facilities. Using this biomass, Australis will work with those growers and utilize Australis operated low cap-ex extraction and manufacturing facilities to produce Australis branded product.
A Proven
The Concerned Shareholder Nominees are the right team to deploy the strategy aimed at returning Australis to its cannabis roots. These carefully selected individuals have significant experience in building reputable companies and identifying investments that create shareholder value.
While the Incumbent Board has assumed no accountability for their track record of failed transactions, the fact remains, they have squandered the plentiful advantages and resources initially endowed upon them including over
The Concerned Shareholders are confident that shareholder value can be maximized by successfully executing the strategy outlined above. Australis shareholders are being presented with a choice: continue to allow the Incumbent Board to squander shareholder resources on frivolous and ineffective strategies or pursue meaningful change, backed by cannabis-savvy entrepreneurs who have built successful cannabis companies before and are prepared to do it again.
For further information or to register your support for Board change, please contact the Concerned Shareholders' shareholder communications advisor,
Additional Information
The information contained in this news release does not and is not meant to constitute a solicitation of a proxy within the meaning of applicable securities laws. In connection with the upcoming annual and special meeting of shareholders of the Company (the "Meeting"), the Concerned Shareholders intend to file a dissident information circular in due course in compliance with applicable corporate and securities laws.
Notwithstanding the foregoing, the Concerned Shareholders are voluntarily providing the disclosure required under section 9.2(4) of National Instrument 51-102 – Continuous Disclosure Obligations ("NI 51-102") and have filed a document (the "Document") containing the disclosure required under section 9.2(6) of NI 51-102 in respect of the Concerned Shareholder Nominees in accordance with securities laws applicable to public broadcast solicitations. The Document is available under the Company's profile on SEDAR at www.sedar.com.
This news release and any solicitation made by the Concerned Shareholders in advance of the Meeting is, or will be, as applicable, made by the Concerned Shareholders, and not by or on behalf of the management of Australis. All costs incurred for any solicitation will be borne by the Concerned Shareholders, provided that, subject to applicable law, the Concerned Shareholders may seek reimbursement from Australis of the Concerned Shareholders' out-of-pocket expenses, including proxy solicitation expenses and legal fees.
The Concerned Shareholders are not soliciting proxies in connection with the Meeting at this time, and shareholders are not being asked at this time to execute proxies in favour of the Concerned Shareholders (in respect of the Meeting). Proxies may be solicited by the Concerned Shareholders pursuant to an information circular sent to shareholders after which solicitations may be made by or on behalf of the Concerned Shareholders, by mail, telephone, fax, email or other electronic means as well as by newspaper or other media advertising, and in person by the Concerned Shareholders, who will not be specifically remunerated therefor. The Concerned Shareholders may also solicit proxies in reliance upon the public broadcast exemption to the solicitation requirements under applicable Canadian corporate and securities laws, conveyed by way of public broadcast, including through press releases, speeches or publications, and by any other manner permitted under applicable Canadian laws. The Concerned Shareholders may engage the services of one or more agents and authorize other persons to assist in soliciting proxies on behalf of the Concerned Shareholders.
The Concerned Shareholders are not requesting that Australis shareholders submit a proxy at this time. If and when the Concerned Shareholders commence a formal solicitation of proxies in connection with the Meeting, proxies may be revoked by a registered holder of the Company's shares (i) by completing and signing a valid proxy bearing a later date and returning it in accordance with the instructions contained in the accompanying form of proxy; (ii) by depositing an instrument in writing executed by the shareholder or by their attorney authorized in writing, as the case may be: (a) at the registered office of the Company at any time up to and including the last business day preceding the day the Meeting or any adjournment or postponement of the Meeting is to be held; or (b) with the Chairman of the Meeting prior to its commencement on the day of the Meeting or any adjournment or postponement of the Meeting; or (iii) in any other manner permitted by law. If and when the Concerned Shareholders have commenced a formal solicitation of proxies in connection with the Meeting, proxies may be revoked by a non-registered holder of the Company's shares at any time by written notice to the intermediary in accordance with the instructions given to the non-registered holder by its intermediary.
None of the Concerned Shareholders or the Concerned Shareholder Nominees or, to their knowledge, any of their associates or affiliates, (I) has any material interest, direct or indirect, in any matter proposed to be acted on at the Meeting, other than the election of directors or (ii) has had any material interest, direct or indirect, in any transaction or proposed transaction since the commencement of the Company's last financial year that has materially affected or could materially affect the Company or any of its subsidiaries (if applicable) other than as set forth below in respect of
Based on public disclosure documents, it is our understanding that the head office of Australis is
The Concerned Shareholders have filed this press release, which contains the information required by section 9.2(4)(c), and the Document which contains the information required by section 9.2(6) of NI 51-102 and Form 51-102F5 Information Circular in respect of the Concerned Shareholders Nominees, under Australis' profile on SEDAR at www.sedar.com.
SOURCE Concerned Shareholders of
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