Aurora Cannabis Spinoff annule sa fusion avec Hemp Company

Aurora Cannabis Spinoff annule sa fusion avec Hemp Company

février 23, 2020 0 Par admin


Australis Capital won’t be combining with Folium Biosciences after all.

Eric Volkman

Australis Capital, an investment company that was spun off in 2018 from cannabis industry major Aurora Cannabis (NYSE:ACB), has put the kibosh on a planned business tie-up. Australis announced this week that it has cancelled its previously announced merger with hemp products producer Folium Biosciences.

The company said in a press release that it « recently discovered new relevant information with regard to Folium and, on that basis, [Australis] has decided to not proceed with the merger. » It did not elaborate.

Hemp oil.

Image source: Getty Images.

The Australis-Folium deal was announced last December, and it was to take the form of a reverse merger. Under its terms, the two companies would exchange shares (in the case of Australis) and membership units (Folium) to create a new entity. This was to inherit the name Folium Biosciences, with the acquired party holding an estimated 89% of shares in the combination.

At the time, Australis pledged that it would provide details of Folium’s financials.

Hemp is seen by numerous analysts and investors to be a good business opportunity in the U.S. The plant produces minimal amounts of Delta-9 tetrahydrocannabinol — THC, the compound that gets a user high — compared to its relative, cannabis. However, it produces far higher levels of cannabidiol (CBD), which is purported to have medicinal properties. Hemp-derived products were legalized in the U.S. with the passage of the 2018 Farm Bill.

Australis was created by Canada-based marijuana vertical Aurora to take advantage of cannabis industry investment opportunities in the U.S. As marijuana remains illegal at the federal level in this country, however, Australis stock — like that of Aurora Cannabis — is listed in Canada, even though the company is headquartered in Las Vegas.

On Thursday, Aurora shares closed down by nearly 2%. 


Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. »>

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