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Australis Capital Inc
Symbol AUSA
Shares Issued 113,143,755
Close 2020-06-30 C$ 0.22
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Australis sued over alleged contract breaches

2020-06-30 19:48 ET - News Release

Mr. Duke Fu of Green Therapeutics reports

GREEN THERAPEUTICS LLC AND MERIDIAN COMPANIES LLC COMMENCE FORMAL LEGAL ACTION AGAINST AUSTRALIS CAPITAL INC. AND CERTAIN OF ITS AFFILIATES FOR BREACH OF CONTRACT

Green Therapeutics LLC and Meridian Companies LLC (the plaintiffs) commenced formal legal action against Australis Capital Inc., Australis Prosper LLC, Australis Terrain LLC and Australis Perennial LLC (the defendants) on April 8, 2020, for various breaches of the contracts described in Australis's press release dated May 21, 2019, pursuant to which the plaintiffs transferred certain cannabis licences, brands, 8.9 acres of land in North Las Vegas, Nev., and other intellectual property, assets and rights to the defendants in exchange for common shares of Australis and other promises and rights. Together, the plaintiffs are among Australis's largest shareholders, together holding 11,413,376 common shares (being approximately 6.7 per cent of the issued and outstanding shares).

The plaintiffs allege that the transactions contemplated by the contracts were predicated on Australis establishing its flagship cultivation and manufacturing facility with Green Therapeutics' experienced operational team and the transferred assets.

Australis has decided to change its business from cannabis brand development, intellectual property, technology, cultivation and manufacturing to ABM, payments and merchant services. Construction of the manufacturing facility is not part of Australis's business plans, and Australis has announced that it intends to sell the property and use the proceeds to purchase Passport Technology Inc. (or alternatively transfer the property in connection with such transaction), a company majority owned and controlled by a director of Australis (see the Australis press release dated June 25, 2020).

Pursuant to the legal action, the plaintiffs are seeking injunctive relief, rescission of the contracts and damages.

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