Last month, Body And Mind Inc. (CSE: BAMM, OTC: BMMJ) announced a strategic investment agreement with Australis Capital Inc. (CSE: AUSA).

Today, Australis teamed up with Body And Mind (BaM) to issue a joint press release revealing that the sale of securities pursuant to that deal has been completed.

With the sale finalized, the deal sees Australis acquiring 16 million shares of Body And Mind for a total of $8 million. The terms of the deal allow Australis to nominate one director to the Body And Mind board so long as they hold 10% of the BaM shares.

Furthermore, Australis has the option available to nominate a second member to the board if the company exercises all of the Warrants and converts all of the Debentures bought in the investment deal.


In addition to the completed sale, the company further announces today that Australis CEO Scott Dowty has been appointed as the first new director of the Body And Mind board, replacing former director Chris Macleod.

Scott Dowty commented on his new role:

“I am eager to add immediate value to the Body And Mind franchise both as Director and as CEO of Australis Capital, a large strategic investor in BaM. Just as Aurora Cannabis built their global platform and spun-out Australis Capital, we will leverage strategic relationships while exercising a disciplined and aggressive approach in expanding BaM’s reach and creating value for BaM shareholders.”

In addition to Canadian operations, Body And Mind also operates south of the border through wholly owned subsidiary Nevada Medical Group (NMG) LLC.

In September, NMG submitted four Nevada dispensary applications including projected locations in Las Vegas and Reno.

Body And Mind was additionally awarded approval for a medical dispensary in Ohio earlier this year, which is being constructed under the name NMG Ohio LLC.

BaM director Robert Hasman had this to say about the investment deal and new US operations:

“This strategic partnership with Australis’ will provide BaM with tremendous opportunities as a result of an immense deal flow. The domain knowledge of the Australis network is industry leading and will be invaluable as we focus our attention on strengthening our two key franchises in Nevada and Ohio.”

New investment deals and outright sales to raise capital have been a regular occurrence surrounding the legalization of adult recreational marijuana in Canada.

Organigram Holdings, for instance, sold off the Trauma Healing Centers line of clinics to Harvest Medicine last month, while distribution deals between various companies have been signed on a nearly daily basis to deal with the issue of increased demand.

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