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Australis Capital (AUSA.C) has entered into a non-binding letter of intent to acquire omnichannel payment services provider Paytron, LLC.

Paytron’s been around since 2015, and they’ve partnered with some of the largest companies in the payment processing industry. When the acquisition closes, Paytron will continue to operate as an independent sales organization (ISO) and become a payment branch for AUSA’s subsidiary, Cocoon Technology.

“Through our acquisition of Paytron and the addition of Marc Ruben and his team, Cocoon Technology will be positioned to bundle self-service technology, payment processing technology and ISO referral networks across North America. These existing relationships will aid in the growth of Cocoon Technology sales while providing dispensaries with an even more robust self-service solution,” said Cleve Tzung, senior vice president of mergers and acquisitions at AUSA.

Cocoon Technology is a cloud-based, self-service fulfillment platform with customer-facing, standalone units that customer use to interact with. Units also come with applications for mobile and tablet for employee-assisted self-service transactions. CocoonPods allow users to verify their identification, research products, place orders and gain loyalty rewards. Customers can also pay with cash or bank cards, and also make charitable donations through the pods.

Here’s what Paytron offers:

  • credit and debit card processing

  • gateway processing

  • point of sale hardware

  • card terminals

  • business loans

Restructuring

This company has been under a trade halt since the middle of December pending their reverse takeover of cannabinoid producer, Folio Biosciences. The two companies are joining forces to create a publicly held vertically integrated producer of non-psychoactive cannabinoids.

“Folium is truly unique in that our exponential growth has been all organic and funded through our sales, which has enabled us to demonstrate a track record of consistent profitability. Now, with access to the public markets and the strategic addition of key seasoned management personnel experienced in operating a public company, we are positioned to navigate to the next level of success in concert with the existing leadership team here at Folium,” said Kashif Shan, chief executive officer and co-founder of Folium Biosciences.

Folium has been around since 2014, and has since grown into a substantial vertically integrated producer, distributor and manufacturer of hemp-derived, non-psychoactive cannabinoids. Their processes and infrastructure produce products throughout diverse industries across the United States and 27 other countries.

The company has been in the process of shuffling their board, and seeking out meaningful acquisitions and partnerships, including penning a vendor agreement with RapidCash ATM to purchase retail kiosks to be used with AUSA’s Cocoon Technology. Another partnerships includes Thrive, Nevada’s largest dispensary chain, which will install CocoonPod kiosks in its eight locations across the state.

“We have been searching for a technology solution to streamline our expanding operations and are always pushing to improve our customer’s experience. Cocoon will enable Thrive to further position our operations and brands at the forefront of the industry as we leverage self-service technology across the enterprise delivering cost-savings and increased revenue,” said Mitch Britten, chief executive officer of Thrive.

Source: stockwatch.com

It’s not hard to see why this company felt the need to shift course after a quick peek at the chart. Their 2019 was abysmal, with their price cratering along with the rest of the cannabis industry. But the only way out is through, and the addition of this new ISO could be a positive step forward.

—Joseph Morton

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

Joseph Morton

Joseph is a Vancouver, BC based writer with a background in journalism and a penchant for the strange, absurd and wonderful. His interests are broad and varied and range from blockchain and cryptocurrency to martial arts.

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