Aurora Cannabis to spin off US subsidiary

One of Canada’s largest cannabis firms, Aurora Cannabis, is planning to spin off its U.S. subsidiary, Australis Capital.

The move would position Australis to exclusively focus on U.S. investment opportunities “primarily in the cannabis and real estate sectors,” the company said in a news release.

The spinoff will be executed by disbursing shares and warrants of the new firm, which is expected to be listed on the Canadian Security Exchange.

Non-Canadian shareholders will receive a cash distribution, while resident shareholders will receive stocks and stock warrants.

Officials with Aurora couldn’t be reached for comment.

Canada’s TMX Group – the largest exchange operator – has warned that publicly traded cannabis firms with holdings south of the border could be delisted because of the plant’s federally illegal status in the U.S.

Australis expects to issue 75 million shares at 20 cents each via a private placement. Gross proceeds of $15 million are anticipated, according to Aurora.