Aurora Cannabis Inc. (NYSE: ACB) announced on November 28th that the company has completed its sale of Australis Capital Inc. through a selling broker.
Australis non-resident shareholders will receive payment from the sale’s net cash proceeds. Distribution of the U.S. assets was originally completed on September 19th to shareholders in Canada.
Offered units of Australis sold to the public amounted to 11,222,349 units. The units each consists of one common share and one common share purchase warrant. Each warrant has an exercise price of $0.25 and a valid period of 12 months after distribution.
In a recent statement, Chief Executive Officer of Aurora Cannabis, Terry Booth, said: “With this final distribution of net cash proceeds to non-resident shareholders, Aurora has completed its commitment to return capital to all of our shareholders.”
Aurora Cannabis, with no direct ownership of Australis, is able to purchase an ownership stake through owned warrants when U.S. regulation allows the company to do so.
Risk of Prosecution for Marijuana-Related Companies. If you are considering investing in a company that is connected to the marijuana industry, be aware that marijuana-related companies may be at risk of federal, and perhaps state, criminal prosecution. The Department of Treasury recently issued guidance noting: “[T]he Controlled Substances Act (“CSA”) makes it illegal under federal law to manufacture, distribute, or dispense marijuana. Many states impose and enforce similar prohibitions. Notwithstanding the federal ban, as of the date of this guidance, 20 states and the District of Columbia have legalized certain marijuana-related activity.”