EDMONTON, AB / ACCESSWIRE / September 22, 2022 / Australis Capital Inc. (CSE:AUSA)(OTCQB:AUSAF) ("AUSA", "AUDACIOUS", or the "Company"), today provides an update on the Company's operations.
AUDACIOUS is currently developing two projects in New York state ("NYS"). The First project is located in Broome County and is being developed in collaboration with its partner Hempire. The second project, partnered with First Americans on the Saint Regis Mohawk Territory, is also underway. Both projects have been licensed by the respective regulatory authorities for the cultivation and manufacturing of cannabis products for the adult use market. the Broome County project will be able to sell statewide to licensed dispensaries, products from the First American project will be sold on the Mohawk Indigenous Reserve.
New York state is currently in the process of awarding adult use retail licenses to applicants who qualify through the social equity program. With final regulations for the NYS adult use market still to be announced and implemented, both the AUDACIOUS projects in NYS provide the Company with a significant early mover advantage. With a population of around 20 million people, industry insiders project the state's adult use market to reach $4.2 billion by 2024. Through its early mover advantage, the Company is well positioned to establish its brand and capture decent market share in the state.
The Company is pleased to provide the following update on its Broome County project
The Company has commenced cultivating cannabis on its wholly owned Broome County property with its partners Hempire. To ensure swift availability of product and control production costs, AUDACIOUS planted outdoor cultivation for the initial crops. AUDACIOUS anticipates harvesting in October. The Company will freeze the harvested product, process into derivatives, which will then be made available for the manufacturing of vapes and edibles.
Vapes and edibles will mark Audacious' first products introduced into the NYS adult usage retail market.
Terry Booth, CEO commented "initially entering the derivative market in NYS is a smart plan and I applaud the team in executing this strategy. Storage of derivatives is obviously safer considering the time lag between first harvest and the time to first sales anticipated we are faced with. It will also allow for high quality products, eliminating the potential variables that come with outdoor grown cannabis flower.
Audacious First NYS Audit
The Hempire project received its first New York State Office of Cannabis Management (OCM) Audit of our Broome cultivation property. The Audacious team had excellent results. With only one minor observation, addressed already, AUDACIOUS passed the audit with flying colors. The authorities commented on the Hempire project being among the very best of those audited to date in terms of operations, SOPs and compliance. This positions the Company well to continue developing its project and serve the NYS adult use market.
Roger Sykes, COO commented, "We are very happy with the outcome of the audit, which is another validation of the high quality we deliver in terms of operations, products and compliance. The positive outcome means that we now have a clear runway towards getting our products on the NYS market. It also bodes well in developing a trusted relationship with the OCM.
Social Equity Dispensaries - Educational Initiative with the Black Institute Group
New York state will award 150 conditional adult use retail dispensary licenses that will be granted to justice involved applicants who meet certain social equity and business experience criteria. To help potential applicants secure a license, the Company has engaged in an educational initiative with its partner Bertha Lewis and the Black Institute. This will include three educational sessions, organized by the Black Institute Group and sponsored by AUDACIOUS. The first of these sessions took place on September 13th. AUDACIOUS is also supporting the efforts of potential dispensary applicants by offering to help write and/or provide strategic input on applications for the first dispensaries for no cost.
Leah Bailey, Chief Business Development Officer for AUDACIOUS, stated, "the objective of the program is to provide an educational overview of the cannabis industry, ancillary opportunities and NY regulations for people interested in opportunities in the industry. Our Regulatory Affairs specialist is providing support at the regulatory webinars, while AUDACIOUS will also be addressing the abundance of other opportunities that exist to support the industry. The event also provides us with considerable networking opportunities to strengthen our ties with other current and future participants in the NY cannabis market."
Bertha Lewis, founder of the Black Institute Group, added, "We are pleased with the inclusionary principals behind the current licensing opportunities for social equity applicants. However, this only creates the opportunity for people to be able to actually capitalize on the opportunity, a lot more support and education is needed, and that is why we are organizing these seminars. Education is at the heart of helping this new group of entrepreneurs be successful, and we are grateful to have found AUDACIOUS whose culture is closely aligned with helping further inclusion in the industry. What's more, AUDACIOUS not only provides financial support for our endeavors, they walk the walk and talk the talk by providing very valuable, actionable insights to our participating entrepreneurs, as well as by providing access to highly experienced operators who share their experiences. We are very pleased with how the program is going and we look forward to hosting a rapidly growing group of aspiring NY cannabis entrepreneurs to our seminars."
The Company recently announced it had met all requirements to apply for the conversion of its provisional into a final license. The Company is pleased to announce that it is progressing well with the administrative work required and anticipates submitting the final forms shortly.
The Company continues to work with its partner Belle Fleur on the construction of a cannabis cultivation and manufacturing facility in Massachusetts. While the original plans included a full indoor grow facility, Belle Fleur has opted to initially focus on concentrate-based products, which allows for the cannabis to be grown in lower cost greenhouse facilities. To this end, an application was made to the municipality where the facility is located to amend the original permit. The amendment was accepted by the municipality and the project is now cleared to progress. Groundwork for the facility is materially complete.
Rolandy Romelus, Belle Fleur CEO, commented, "With this amendment approved, we are now well positioned to progress with our project and bring high quality concentrates to the Massachusetts market. We look forward to continuing our partnership with AUDACIOUS, complete construction of our facility and serve our market with the high-quality products the Rapper Weed brand is synonymous with."
Over the past months, the Company has made considerable strides towards reducing cash burn. Since March of 2021 SG&A at the company was reduced by close to 50%. At the same time we have managed to expand the Audacious footprint in the US Cannabis space significantly.
AUDACIOUS is a next-generation MSO growing the cannabis industry of tomorrow from the ground up, led by industry pioneer Terry Booth and an accomplished management team with proven industry track records. With operations that range from providing industry-leading sustainable cultivation design and optimization to retail storefronts, growing flower in-house, and manufacturing award-winning brands, AUDACIOUS has products and solutions for everyone. Quickly expanding through innovative partnerships and collaborations, AUDACIOUS is forging the inclusive cannabis community of tomorrow, today. Learn more about AUDACIOUS here.
AUDACIOUS common shares trade on the CSE under the symbol "AUSA" and on the OTCQB under the symbol "AUSAF."
Terry Booth, CEO
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Neither the Canadian Securities Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that may constitute "forward-looking information" withinthe meaning of applicable Canadian securities laws. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward looking statements in this news release include, but are not limited to, the Company's continued ability to satisfy the information guidelines set out in NP 12-203, the duration of the MCTO and the completion and anticipated timing of the Company making the Annual Filings and Interim Filings.
The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by the Company, including, without limitation, information based on the current state of the Annual Filings and Interim Filings; the Company's belief that its external auditor will complete its audit and release its audit opinion in a timely manner that will allow the Company to file the Annual Filings; that the unaudited financial statements prepared by management of the Company will not differ materially from audited financial statements once available; and the ability of the Company's management to execute its business strategy, objectives and plans. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks and uncertainties arising from any delay in filing the Annual Filings and Interim Filings; the Company's ability to satisfy the requirements of NP 12-203; the revocation of the MCTO and replacement with a cease trade order; general business, economic, competitive, political and social uncertainties; the impact of the COVID-19 pandemic on the Company's operations and other factors, many of which are beyond the control of the Company.
The forward-looking statements contained in this news release represent the Company's expectations as of the date hereof and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Australis Capital Inc.