Australis Capital

CN: AUSA

CA$49.6m market cap

CA$0.44 last close

Australis Capital is a company focused on US cannabis assets. It is acquiring a range of low-valuation cannabis assets that it believes will have staying power in the rapidly developing cannabis market, and has the goal of forming them into a fully operational and integrated US cannabis business.

Investment summary

Australis is in the process of building itself into a fully operational provider of medical and recreational cannabis. Its strategy is to acquire assets such and brands and technology that differentiate it from other players in the space. The recent agreement to acquire Green Therapeutics and to expand its growing operation should provide the production capacity for these brands and establish the company as a cannabis grower in the state of Nevada.

Y/E Mar
Revenue (C$m)
EBITDA (C$m)
PBT (C$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A N/A N/A N/A N/A N/A N/A
2019A 0.1 (3.6) (3.5) (3.70) N/A N/A
2020E 0.3 (6.2) (3.6) (2.17) N/A N/A
2021E 0.3 (6.2) (6.5) (3.69) N/A N/A
Industry outlook

The US cannabis industry is expected to grow at a more than 20% annual growth rate in the coming years as more states legalize recreational cannabis and the infrastructure is build in those states that have already legalized it. Moreover, US federal legalization may be a near-term inflection point for the industry, allowing operations to cross state lines and access to traditional sources of capital.

Last updated on 21/11/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (C$m) 15.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (4.5) (37.6) (48.9)
Relative* (7.5) (41.2) (56.4)
52-week high/low C$1.0/C$0.3
*% relative to local index
Key management
Scott Dowty CEO
Michael Carlotti CFO
Brent Reuter SVP IR