Mr. Scott Dowty of Australis reports
EARLY WARNING NEWS RELEASE OF AUSTRALIS CAPITAL INC.
Australis Capital Inc. has acquired, through the exercise of 12,793,840 warrants of Body and Mind Inc., ownership of 12,793,840 common shares in the capital of Body and Mind. The common shares were acquired pursuant to the exercise of the warrants acquired on a private placement basis on Nov. 5, 2018. The head office of the company is located at 750 -- 1095 West Pender St., Vancouver, B.C., V6E 2M6.
Prior to the acquisition, Australis held 22,079,788 common shares, 12,793,840 warrants and debentures in the principal amount of $1.6-million, convertible into common shares at 55 cents per common share.
After the acquisition, Australis holds 34,873,628 common shares and debentures in the principal amount of $1.6-million. Assuming the conversion of all debentures, Australis would hold 37,782,719 common shares, which on a partially diluted basis is equal to approximately 37.7 per cent of the issued and outstanding common shares of the company.
Australis paid $6,396,920 to exercise the warrants at a price of 50 cents per share, resulting in 12,793,840 common shares.
Australis acquired the common shares for investment purposes. In pursuing such purposes, Australis takes a long-term view of its investment. It reserves the right to formulate other plans, or make other proposals, and take such actions with respect to its investment in the company. Depending on market conditions and other factors, Australis may acquire additional securities of the company as Australis may deem appropriate, whether in open-market purchases, privately negotiated transactions or otherwise. Australis may dispose of some or all of such securities. Australis may also reconsider and change its plans or proposals relating to the foregoing.
This press release is issued pursuant to early warning requirements of National Instrument 62-104 and National Instrument 62-103, which also requires a report to be filed with regulatory authorities in each of the jurisdictions containing additional information with respect to the foregoing matters. A copy of the early warning report will be available under the company's SEDAR.
About Australis Capital Inc.
A spinout of Aurora Cannabis in September, 2018, Australis identifies and invests in the cannabis industry predominantly in the United States, a highly regulated, fragmented, rapidly expanding and evolving industry. Investments may include, but are not limited to, equity, debt or other securities of both public and private companies, financings in exchange for royalties or other distribution streams, and control stake acquisitions. Australis adheres to stringent investment criteria and focuses on significant near and midterm high-quality opportunities with strong return potentials, while maintaining a steadfast commitment to governance and community. Australis's board and management team have material experience with, and knowledge of, the cannabis space in the United States, extensive backgrounds in highly regulated industries, adherence to stringent regulatory compliance, public company, and operational expertise.
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