Australis Capital shareholders are not happy about the way things have been going for the company, and this week they raised their voices.
A dispute boils up between a group of disgruntled investors and a public cannabis investment operator.
In the US Congress a major cannabis legalization vote was scheduled this past week for sometime later this month.
Keep reading to find out more cannabis highlights from this week.
Investor group raises question at cannabis company
A group of investors in Australis Capital (CSE:AUSA,OTC Pink:AUSAF) issued a statement to the company and asking for a shareholder meeting to elect new directors to the board. These investors are arguing the company is willingly delaying the election of new board leadership.
“As demonstrated by the Company’s poor share price performance since inception, it is clear that an immediate change in leadership is required to protect shareholder value,” the group said in its statement.
The investor group includes: Terry Booth, Lola Ventures, Roger Sykes, 1703469 Alberta, Duke Fu, Green Therapeutics LLC and Jason Dyck.
According to these investors, since Australis’ acquisition plan for Passport Technology failed at the start of August the company has been unclear and lacked communication with all shareholders.
“The Board has categorically failed in its duty to provide oversight and to effectively communicate with shareholders,” the investor group said. At the end of August Australis indicated it would hold its annual general and special meeting of shareholders on November 17.
This past week, on Thursday (September 3) Australis confirmed its had signed a settlement agreement with its missed acquisition. Additionally, executive chairman Scott Dowty left the company.
In his departure, Dowty elected to let go of his cash severance and his remaining unvested stock options. However, he will still keep his Restricted Share Units and the company will issue just over 4 million shares of the company to Dowty.
“This settlement represents a fair and reasonable resolution between AUSA and Passport, and an equitable separation between the Company and Scott,” said Cleve Tzung, CEO of AUSA.
This isn’t the only big shakeup for Australis as earlier this year, the company confirmed the departure of its CFO Michael Carlotti.
Historic cannabis vote is set to take place
This past week a much anticipated vote for US cannabis legalization was scheduled to take place in Congress on September 21.
House Majority Leader Steny Hoyer told Cannabis Wire the vote would be for the MORE Act as a way that would decriminalize marijuana at the federal level. “This legislation is an important step to correct the disproportionate impact our criminal justice system has had on communities of color,” said Rep. Hoyer.
While the vote may prove to be historic and may end up being more symbolic, since obtaining an approval would put it up against the Republican-controlled Senate and there’s little indication the legislation would make it.
Alongside taking cannabis away from the Controlled Substances Act, the MORE Act would make it so expungements become available to those with a previous federal cannabis record, Cannabis Wire wrote.
Cannabis company news
- Curaleaf Holdings (CSE:CURA,OTCQX:CURLF) celebrated US$1 million in sales for its Select Elite Live cartridges in the Florida market. The feat was accomplished under a month of the product’s launch in the state.
- Zenabis Global (TSX:ZENA) told investors it had confirmed its first shipment of cannabis product to an undisclosed Australian distributor. The company expects to import 100 kilograms into Australia during its Q3 2020.
- Canopy Growth (NYSE:CGC,TSX:WEED) confirmed to Marijuana Business Daily it let go of more of its work force at its Niagara, Ontario facility. The company did not indicate how many staffers had been let go but said it would show its new head count in its next financial result report.
- Halo Labs (NEO:HALO,OTCQX:AGEEF) and High Tide (CSE:HITI,OTCQB:HITIF) amended their deal for the asset sale of KushBar retail cannabis assets. Halo will pay C$5.7 in total through cash, shares and special notes for the three active stores.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.