Australis Capital Raises $30 Million Selling Shares at $2.03 with $2.64 Warrants

Australis Completes $30 Million Private Placement

LAS VEGAS,Oct. 26, 2018/CNW/ –Australis Capital Inc. (“Australis” or the “Company”) (CSE: AUSA) is pleased to announce that the Company has closed its previously announced non-brokered private placement of units of the Company (the “Units”) for gross proceeds of$30,000,000(the “Private Placement”). In order to accommodate oversubscriptions, the Company also intends to increase the size of the Private Placement by an additional$2,000,000to be completed in a second tranche.

Pursuant to the Private Placement, Australis issued14,778,325Units at$2.03per Unit. Each Unit consisted of one common share in the capital of the Company (the “Shares”) and one-half of a common share purchase warrant (a “Warrant”). Each whole Warrant will entitle the holder to purchase one additional Share at a price of$2.64on or beforeOctober 25, 2020. The Company may accelerate the expiry of the Warrants in the event that for any ten consecutive trading days the daily volume weighted average trading price of the Shares is greater than$3.43.

Canaccord Genuity Corp. acted as the Company’s exclusive financial advisor in connection with the Private Placement.

All securities issued in connection with the Private Placement are subject to a statutory hold period of four months plus a day in accordance with applicable securities legislation ending onFebruary 26, 2019.

In connection with the Private Placement, the Company paid aggregate finder’s fees of approximately$558,200.

The net proceeds from the Offering will be used by the Company for investments that adhere to the Company’s Investment Policy as described in its Prospectus datedAugust 14, 2018.

We are very pleased to have successfully closed on our first capital raise as a public company. Our ability to complete this transaction in a currently challenging capital markets environment demonstrates the unwavering support by our new and existing investors and their belief in the future prospects of Australis and its unique business model. We look forward to prudently deploying this capital in investments that we believe will create significant shareholder value for our investors.

Michael Carlotti, Chief Financial Officer of Australis

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described in this news release inthe United States. Such securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and, accordingly, may not be offered or sold withinthe United States, or to or for the account or benefit of persons inthe United Statesor “U.S. Persons”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

About Australis Capital Inc.

Australis Capital identifies and invests in the cannabis industry predominately inthe United States, a highly regulated, fragmented, rapidly expanding and evolving industry. Investments may include and are not limited to equity, debt or other securities of both public and private companies, financings in exchange for royalties or other distribution streams, and control stake acquisitions.Australis Capital adheres tostringent investment criteriaandwill focuson significant near and mid-term high-quality opportunities with strong return potentials while maintainingasteadfast commitment to governance and community. Australis Capital’s Board, Management and Advisory Committee members have material experience with, and knowledge of, the cannabis space in the U.S., extensive backgrounds in highly regulated industries, adherence to stringent regulatory compliance, public company and operational expertise.

Australis’ Common shares trade on the CSE under the symbol “AUSA”.

For further information about Australis, please visit the website at or contact the Company by e-mail

Original press release

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