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INDS - Indus Holdings Inc News Story

C$1.83 -0.3  -13.3%

Last Trade - 04/03/21

Sector
Healthcare
Size
Small Cap
Market Cap £71.7m
Enterprise Value £92.3m
Revenue £31.0m
Position in Universe 792nd / 2712

Indus Holdings, Inc. Announces an Update to Cultivation Expansion Plans

Thu 7th January, 2021 1:00pm
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SALINAS, Calif., Jan. 07, 2021 (GLOBE NEWSWIRE) -- Indus Holdings, Inc.
("Indus” or the “Company”) (CSE:INDS; OTCQX: INDXF), a leading,
vertically-integrated, California-focused cannabis company, announces an
update to the expansion plans previously announced November 17th of last year.
The Company has signed a new letter of intent (“LOI”) and is electing to
pursue an alternative path to its expansion, which includes the planned
construction of a purpose-built, state-of-the-art cannabis cultivation and
processing facility that will combine modern technology with an
industry-leading cost-structure to produce the highest quality cannabis. 

While the Company had previously been in discussions regarding a handful of
retrofit greenhouses, Indus now anticipates approximately a twelve-month
construction cycle that will yield one of the largest cannabis campuses
anywhere in the world. After careful consideration of its options, Indus has
decided to pursue construction of a new, purpose-built facility that is nearby
to its existing operations. The choice in selecting the new facility is driven
by a combination of attractive factors that include:
* Superior growing climate
* Ready and immediate access to electrical power
* A substantially lower cultivation tax-rate
* A less expensive lease structure
* Expansion capabilities that will accommodate in excess of 1.5m square feet
The LOI contemplates a land-lease from a developer that has prepared the
property for cannabis cultivation. Indus will be responsible for the
construction costs of the buildings on the property using cash raised in the
recent equity offering to finance the first stage of the buildout, currently
anticipated to be between 250,000 and 320,000 square feet of greenhouse
operations. Indus has the exclusive option to expand on the property but is
not obligated to do so. It is anticipated that the property under
consideration could accommodate nearly 1.5 million square feet of modern
mixed-light greenhouses.

The transaction is subject to final site due-diligence and negotiation of
construction contracts as well as the finalization of a lease, which is
expected to be completed during the first quarter of 2021. In the event that
the company pursues the transaction contemplated in the LOI, Indus anticipates
that the site will be ready for operation in the first half of 2022.

ABOUT INDUS HOLDINGS, INC
Indus Holdings, Inc. (CSE: INDS; OTCQX: INDXF) is a vertically-integrated
cannabis company with advanced production capabilities, including cultivation,
extraction, manufacturing, brand sales & marketing, and distribution. Founded
in 2014 and based in Salinas, California, Indus offers services supporting
every step of the supply chain and an extensive portfolio of award-winning
brands, including Cypress Cannabis, House Weed, The Original Pot Co., MOON,
Humble Flower, and Kaizen Medicinals. Indus Distribution, a division of Indus
Holdings, Inc., is a leading distributor of cannabis products, servicing an
extensive portfolio of brands and licensed retailers.

Investor Relations Contact
Bill Mitoulas
416.479.9547
bill@indusholdingco.com

Media Contact
Renata Follmann
pr@indusholdingco.com

Company Contact
Mark Ainsworth 
ir@indusholdingco.com

Forward-Looking Information and Statements and non-IFRS Financial Measures

This press release contains certain "forward-looking information" within the
meaning of applicable Canadian securities legislation and may also contain
statements that may constitute "forward-looking statements" within the meaning
of the safe harbor provisions of the United States Private Securities
Litigation Reform Act of 1995. Such forward-looking information and
forward-looking statements are not representative of historical facts or
information or current condition, but instead represent only Indus’ beliefs
regarding future events, plans or objectives, many of which, by their nature,
are inherently uncertain and outside of Indus’ control. Generally, such
forward-looking information or forward-looking statements can be identified by
the use of forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or may contain statements that certain
actions, events or results "may", "could", "would", "might" or "will be
taken", "will continue", "will occur" or "will be achieved.” The
forward-looking information and forward-looking statements contained herein
may include, but are not limited to, the ability of the Company to
successfully achieve business objectives (including completion of renovations
and increasing production capacity), and expectations for other economic,
business, and/or competitive factors. There can be no assurance that such
forward-looking information will prove to be accurate, and actual results and
future events could differ materially from those anticipated in such
forward-looking information. This forward-looking information reflects
Indus’ current beliefs and is based on information currently available to
Indus and on assumptions Indus believes are reasonable.

Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Indus to be materially different from
those expressed or implied by such forward-looking information. Such risks and
other factors may include, but are not limited to: general business, economic,
competitive, political and social uncertainties; general capital market
conditions and market prices for securities; delay or failure to receive board
or regulatory approvals; the actual results of future operations; operating
and development costs; competition; changes in legislation or regulations
affecting Indus; the timing and availability of external financing on
acceptable terms; the available funds of Indus and the anticipated use of such
funds; delay or inability to complete an acquisition; favorable production
levels and outputs; the stability of pricing of cannabis products; the level
of demand for cannabis product; the availability of third-party service
providers and other inputs for Indus’ operations; lack of qualified, skilled
labor or loss of key individuals; and risks and delays resulting from the
COVID-19 pandemic. A description of additional assumptions used to develop
such forward-looking information and a description of additional risk factors
that may cause actual results to differ materially from forward-looking
information can be found in Indus’ disclosure documents, such as Indus’
listing statement filed on the SEDAR website at www.sedar.com. Although Indus
has attempted to identify important factors that could cause actual results to
differ materially from those contained in forward-looking information, there
may be other factors that cause results not to be as anticipated, estimated or
intended. Readers are cautioned that the foregoing list of factors is not
exhaustive. Readers are further cautioned not to place undue reliance on
forward-looking information as there can be no assurance that the plans,
intentions or expectations upon which they are placed will occur.
Forward-looking information contained in this news release is expressly
qualified by this cautionary statement.

This press release includes non-IFRS financial measures, specifically adjusted
EBITDA, which is not a measure of financial performance under IFRS and should
not be considered superior to, as a substitute for or as an alternative to,
and should only be considered in conjunction with IFRS financial measures.

The forward-looking information contained in this news release represents the
expectations of Indus as of the date of this news release and, accordingly, is
subject to change after such date. However, Indus expressly disclaims any
intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, except as
expressly required by applicable securities law. Neither the Canadian
Securities Exchange nor its Regulation Service Provider has reviewed, or
accepts responsibility for the adequacy or accuracy of, the content of this
news release.

(https://www.globenewswire.com/NewsRoom/AttachmentNg/ac148692-0126-4cb3-bf66-20c3e5172856)



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