Australis Capital closes deals with Body and Mind Inc. and Rthm Technologies, Inc.

Published: November 5, 2018

Australis Capital closes deals with Body and Mind Inc. and Rthm Technologies, Inc.

Australis Capital Inc. has completed its previously announced investment in Body and Mind Inc. and acquisition of Rthm Technologies, Inc.

BaM is a publicly traded company with numerous years of experience as one of Nevada’s first medical cultivators, producers and brands. BaM has recently expanded into Ohio and invests in high quality medical, recreational cannabis cultivation and production and retail. Pursuant to the terms of its investment, Australis acquired (i) 16,000,000 units of BAM, each comprised of one common share and one common share purchase warrant, at a purchase price of $0.40 per unit for $6,400,000, and (ii) $1,600,000 principal amount 8% unsecured convertible debentures of BaM maturing two years following the date of issue.

Rthm is a private company that has developed a complete suite of proprietary technology including advanced heart rate tracking and analysis algorithms and comprehensive circadian rhythm mapping techniques, which is among the most advanced digital health platforms in the world. Pursuant to the terms of the Rthm acquisition, the Company has paid the following consideration to the shareholders of Rthm: (a) CAD $800,000 in cash payments, (b) an aggregate of 1,742,611 common shares of Australis, and (c) and aggregate of CAD $200,000 in promissory notes, which become payable upon certain patents being granted to Rthm. In addition, the Company will issue common shares of Australis to the shareholders of Rthm with an aggregate value of CAD $1,250,000 upon the achievement of certain milestones.