CannabisNews420.com – Cannabis/Marijuana Industry News
Last Tuesday, February 18, 2020, Australis Capital Inc. announced the termination of its proposed acquisition (via merger) of Folium Equity Holding LLC, a fully integrated hemp/CBD operating company based in Colorado. The transaction, announced in the middle of December 2019, was highly anticipated as a major step in the industry’s ongoing consolidation in the current down market. Australis, a spin-off of well-known major cannabis player Aurora Cannabis Inc., was publicly listed on the Canadian Securities Exchange and over-the-counter in the U.S., as an investment company aimed at being the “beachhead” for Aurora’s U.S. cannabis investments.
Original discussions with Folium began about a year and a half ago when CBD was the “talk of the town” and hot industry. Following a minority investment by Australis, it was contemplated that Aurora would ultimately acquire Folium. However, as Aurora and Australis sought to demonstrate their independence (now being wholly-separate companies) and given the existing Australis minority investment, the strategy shifted to having Australis be the proposed acquirer, with a final merger agreement being reached in December of last year. Yet, in the course of its diligence efforts over the intervening period following the signing of the merger agreement, Australis’ uncovered data and … Keep reading