Australia cannabinoid company AusCann Group Holdings Limited (ASX: AC8) has announced it has entered into a conditional contract for the sale of its premises in Wangara, Western Australia (again).
AusCann had previously lined up another buyer in September last year. However, the conditional contract lapsed as a result of incomplete due diligence within the allocated timeframe.
Subject to the terms and conditions being satisfied under the new contract, Optral Pty Ltd will be acquiring the premises for a sum of $6,750,000 and the transaction is expected to settle on 8 June 2023.
AusCann says it intends to use the funds from the sale of the facility for a proposed material acquisition and working capital.
In other recent news from the company, last month AusCann said it had entered into a share sale agreement with Animal Health Holdings Pty Ltd concerning CannPal Animal Therapeutics.
Animal Health Therapeutics (AHH) will be controlled by AusCann’s outgoing CEO, Layton Mills. AusCann announced Mr. Mills’ resignation in September last year. Mr. Mills sold CannPal to AusCann back in November 2020.
Under the arrangement, AusCann will divest 52% of CannPal to AHH, retaining a 48% free-carried interest in the company and with no obligation to fund it.
AusCann stated:
“The Partial Divestment enables CannPal to operate as an unencumbered and private animal health company better positioned to attract, secure and maintain strategic partnerships and resources for the continued development and commercialisation of AusCann’s animal health assets”
CannPal Animal Therapeutics is developing products containing cannabidiol (CBD), tetrahydrocannabinol (THC) and other active ingredients as veterinary medicines and nutraceuticals; focusing on the treatment/management of pain, inflammation, mood and dermatological skin conditions.
Mr. Mills hasn’t been the only one in recent times to head for the AusCann exit sign. In January this year, the company announced Krista Bates had resigned from her position as Non-executive Director of the company to “pursue other corporate interests”, following the completion of a three-year term with the company.
AusCann shares remains suspended from trading. Its shares last traded in late August 2022 – and the road from here for the company isn’t clear at this point in time.
