EDMONTON — Aurora Cannabis Inc. is planning to spin off its Australis Capital subsidiary as a separate entity that would focus primarily on investing in the U.S. cannabis and real estate sectors.
The spin-off will be achieved by distributing shares and warrants of the new company — to be listed on the Canadian Security Exchange.
Aurora shareholders resident in Canada will receive the shares at no cost to them while non-resident shareholders of Aurora will receive cash, net of withholding taxes, instead of equity in Australis.
Australis also intends to issue 75 million shares at 20 cents each through a private placement for gross proceeds of $15 million.
Australis also receives $500,000 from Aurora, as advance payment for warrants to buy Australis stock for up to 10 years.
Aurora is one of Canada’s biggest publicly traded cannabis producers, headquartered in Edmonton.