Edison issues initiation on Australis Capital (AUSA)

LONDON, UK / ACCESSWIRE / May 31, 2019 / Australis Capital (CSE: AUSA) is a cannabis-focused company spun out from Aurora Cannabis (ACB) to take advantage of the rapidly growing US cannabis market. It has acquired a range of assets across the industry, with a focus on durable assets and those that can be leveraged across multiple geographies such as brands, IP and technology. The company has assets and has entered into deals with a total nominal value of C$47.8m to date.

The company is valued at C$144.4m after adjusting for the market price of “Body & Mind” (with the other investments valued at cost rather than to market). The shares currently trade at a 57% premium, if fully diluted. We estimate that this implies a 19% CAGR. Considering we forecast 24% market growth and expect rapid value inflection on federal legalization, this premium is easily justifiable.

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