Audacious Secures $20M Funding & Closes $3.1M Non-Brokered Private Placement Tranche

Australis Capital Inc. AUSA AUSAF, which operates as Audacious, announced Thursday that it is looking to raise up to $20 million through a term sheet with LDA Capital, LLC, for committed funding in tranches.

Under the terms of the agreement, Audacious is entitled to draw up to $10 million in tranches, with an option to draw down up to $20 million subsequent to completion of the first five tranches of $2 million each, with specific provisions for accelerated or larger tranches.

The funding will mature in 24 months and is structured as a convertible bond with a zero-coupon, issued at a 15% discount to the 5-day VWAP on the date a tranche is exercised.

Rob Delgado, chairman of DelMorgan & Co., who agreed to act as exclusive strategic transaction advisor to Audacious, called the raise an "important step" for the company in "realizing its vision of becoming a leading multi-state operator in the U.S. market."

Terry Booth, Audacious' CEO, said the company will utilize the money to fund its growth initiatives, including "immediately scaling up our ability to deliver product into the Nevada and California markets where our brands are finding great resonance with consumers."

Non-Brokered Placement

The Las Vegas-based company also said that it has wrapped up the first tranche of a non-brokered private placement of its units at 17 cents per unit.

Audacious issued 18.43 million units for proceeds of roughly $3.1 million.

Each unit consisted of one Audacious' common share and one share purchase warrant, each being exercisable into one additional share at 35 cents per share on or before December 8, 2023.

In connection with the transaction, the company paid aggregate cash finder's fees amounting to roughly $16 000 and issued 94,058 finder's warrants to certain qualified arm's length finders, with each finder's warrant being exercisable into one share at 35 cents per warrant share on or before December 8, 2023.

The company intends to use the proceeds from the funding and the offering for acquiring products, general working capital, acquisitions, and investments.

More news from Audacious:

Audacious Reports 2,068% YoY Growth In Q2 Revenue, Anticipates Q3 Revenues North Of $3M

Audacious Reaches Asia's Cannabis Market, Teams Up With Thailand-Based Golden Triangle Health

EXCLUSIVE: Terry Booth Explains Audacious' Big Bet On Cannabis Brands

AUDACIOUS Teams Up With Professional Bull Riders On New CBD Products