Adam Jackson
Dallas-based Auri Inc. (OTC: AURI) acquired a Florida cannabis product manufacturer, which is expected to bring an additional $35 million-$79 million in gross revenue, the company announced last week.
CEO Edward Vakser led the acquisition of Sutimco International through a conventional bank loan. He emphasized the acquisition’s “friendly” nature, stating that Auri would avoid additional financial burdens in the process.
While the immediate impact on Auri’s market cap from the purchase might be modest, it is expected to enhance the company’s operations and supply chain, the company said.
The manufacturer’s assets include inventories of hemp, marijuana products, and premade gummies. Auri intends to incorporate these products into its existing and upcoming lines.
Beyond this acquisition, Vakser confirmed ongoing negotiations with a consulting group to guide Auri’s Nasdaq microcap listing. This comes alongside the company’s strategic roll-up program, aimed at increasing its market cap and revenue through a series of acquisitions and partnerships in the sports and entertainment sectors, including products such as the Champ line.
A recent trip to a cannabis expo in Las Vegas led to several distribution deals, which Vakser believes could translate to monthly revenues exceeding $100,000.
To streamline its financial structure, Auri reported a reduction in authorized shares by 3 billion. Vakser purchased back certificates, consolidating Auri’s position in the market.
