Indus Holdings Buys Lowell Herb And Hacienda Assets For $39M, Confirms Name Change
Indus Holdings Inc. (OTCQX:INDXF) will buy Lowell Herb Co., a California-based organic cannabis brand, in a $39 million cash and stock deal.
The Salinas, California-focused cannabis company confirmed Thursday it will acquire all of the Lowell Herb and Lowell Smokes brands, including production assets from The Hacienda Group.
The Deal Details
Indus will issue 22.64 million subordinate voting shares of the company plus a cash payment of $4.1 million.
The issuance of the shares was through a private placement transaction, and Indus settled to register those shares for resale in the U.S. Hacienda will temporarily continue to manufacture Lowell products.
In relation to the purchase, Indus will be renamed Lowell Farms Inc.
Its subordinate voting shares and warrants will start trading on the Canadian Securities Exchange on March 5, under the ticker symbols LOWL and LOWL.WT. The subordinate voting shares will also commence trading on the OTCQX on March 5, under the ticker symbol LOWLF.
“The cannabis industry is awash in brands competing for our attention, but Lowell has risen to the top of the fray as a brand that simultaneously empowers a movement, welcomes the curious, and greets the reacquainted all with a grace and elegance that other brands can only aspire to,'' board chair George Allen said.
“Every resource under our control will be employed in unlocking Lowell’s full potential," he added.
Gregory Heyman, founder of Beehouse, said that the consolidation will form “a leading producer of California cannabis and the next step for the first great American cannabis brand," stated. "The Indus team’s commitment to growing excellent cannabis and the communities they serve also realizes Lowell’s mission to normalize cannabis in America."
Indus’ Previous Activities
In December, Indus Holdings raised CA$30 million ($23.94 million) by selling 20 million units of the company at a price of CA$1.50 per unit. At the time, the company noted it plans to use the collected net proceeds to support the development of a cultivation and production facility and for standard corporate practices.
Prior to the offering, in November, the company announced its plans to boost cultivation operations. In January, it updated that plan with a new letter of intent focusing on the planned building of a state-of-the-art cannabis cultivation and processing facility.
The company said it projects for the construction to last 12 months, but to “yield one of the largest cannabis campuses anywhere in the world.”
Indus was founded in 2014. Its portfolio of brands includes Cypress Cannabis, House Weed, The Original Pot Co., MOON, Humble Flower, and Kaizen Medicinals.
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