TORONTO , June 30, 2020 – Green Therapeutics LLC and Meridian Companies LLC (together referred to herein as the “Plaintiffs“) announced today that they commenced formal legal action against Australis Capital Inc. (“Australis“), Australis Prosper LLC, Australis Terrain LLC and Australis Perennial LLC (together with Australis referred to herein as “Defendants“) (AUSA.CN) on April 8, 2020 for various breaches of the contracts described in Australis’ press release dated May 21, 2019 (the “Contracts“) pursuant to which the Plaintiffs transferred certain cannabis licenses, brands, 8.9 acres of land in North Las Vegas, Nevada (the “ Property“), and other intellectual property, assets, and rights (collectively, the “Transferred Assets“) to the Defendants in exchange for common shares of Australis and other promises and rights. Together the Plaintiffs are one of Australis’ largest shareholders, together holding 11,413,376 common shares (being approximately 6.7% 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 (the “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 ATM, payments, and merchant services. Construction of the Manufacturing Facility is not part of Australis’ 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.
SOURCE Green Therapeutics LLC
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