Australis Capital

CN: AUSA

C$20.7m market cap

C$0.18 last close

Australis Capital is focused on US cannabis assets that it believes will have staying power in the rapidly developing cannabis market. The company’s goal is to form these assets into a fully operational and integrated business in this highly regulated industry.

Investment summary

Following the cancellation of the proposed merger with Folium Biosciences, we expect Australis to renew its previous strategy of acquiring durable assets in the cannabis space, including an increased investment in the company’s Cocoon payment and procurement technology platform.

Y/E Mar
Revenue (C$m)
EBITDA (C$m)
PBT (C$m)
EPS (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 0.2 (8.6) (10.3) (5.96) N/A N/A
2021E 2.8 (10.2) (10.5) (5.90) 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 built 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 25/06/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (C$m) 17.5
Forecast gearing ratio (%) 26
Price performance
%
1m
3m
12m
Actual 1.2 30.6 (74.8)
Relative* (3.0) 4.9 (76.1)
52-week high/low C$0.8/C$0.1
*% relative to local index
Key management
Scott Dowty CEO
Michael Carlotti CFO
Brent Reuter SVP IR