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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 £71.4m
Enterprise Value £92.0m
Revenue £30.9m
Position in Universe 792nd / 2711

Indus Holdings, Inc. Announces the Acquisition of Lowell Herb Co.

Thu 25th February, 2021 3:09pm
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THE COMBINED COMPANY WILL OPERATE UNDER
THE NEW NAME: LOWELL FARMS INC.

PENDING EXCHANGE APPROVAL, THE COMPANY WILL CONTINUE TO 
TRADE ON THE CSE UNDER THE TICKER “LOWL”

SALINAS, Calif., Feb. 25, 2021 (GLOBE NEWSWIRE) -- Indus Holdings, Inc.
("Indus” or the “Company”) (CSE:INDS; OTCQX: INDXF), a leading,
vertically-integrated, California-focused cannabis company, announced the
acquisition of substantially all of the assets of the Lowell Herb Co. and
Lowell Smokes trademark brands, product portfolio, and production assets from
The Hacienda Group effective immediately. Lowell Herb Co. is a leading
California cannabis brand that manufactures and distributes distinctive and
highly regarded premium packaged flower, pre-roll, concentrates, and vape
products.

The Transaction is valued at approximately US$39.0 million and is comprised of
a cash payment of US$4.1 million and the issuance of 22,643,678 Subordinate
Voting Shares of the Company (of which 5,000,000 will be held in escrow to
secure certain indemnification obligations undertaken by the sellers in the
transaction).The share consideration was issued in a private placement
transaction and the Company has agreed to register such shares for resale in
the United States. Hacienda has agreed to continue to produce Lowell products
for an interim period for the account of the Company pending completion of the
transfer of certain regulatory assets.

In connection with this acquisition, the Company intends to complete a change
in its corporate name to Lowell Farms Inc. It is currently anticipated that
the Company’s Subordinate Voting Shares and Warrants will begin trading on
the Canadian Securities Exchange (CSE) effective on March 5, 2021, under the
ticker symbols LOWL and LOWL.WT, and that the Subordinate Voting Shares will
begin trading on the OTCQX effective on March 5, 2021, under the ticker symbol
LOWLF. No action is required to be taken by existing securityholders of the
Company with respect to the name change. Outstanding share and warrant
certificates are not affected by the name change and do not need to be
exchanged.

"The combination of Indus and Lowell will create a leading producer of
California cannabis and the next step for the first great American cannabis
brand," said Gregory Heyman, founder of Beehouse, Lowell’s largest investor.
"The Indus team’s commitment to growing excellent cannabis and the
communities they serve also realizes Lowell’s mission to normalize cannabis
in America."

“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,'' said George
Allen, Chairman of the Board for Indus Holdings, Inc. “Every resource under
our control will be employed in unlocking Lowell’s full potential.”

The Company will provide updates to its cultivation expansion plans as well as
the operational status of our greenhouse in the upcoming earnings call and
release scheduled for March 2, 2021.

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.

About Lowell Herb Co.
Lowell Herb Co. has elevated the perception of cannabis consumption with its
sophisticated packaging and best-selling products. Based in California, Lowell
Herb Co.’s ethos is reflected through its instantly recognizable bull logo
that pays homage to the fight against cannabis prohibition. For more
information, visit https://lowellfarms.com and follow on Instagram
@lowellfarms.

Investor Relations Contact
Bill Mitoulas
416.479.9547
bill@lowellfarms.com

Media Contact
Renata Follmann
pr@lowellfarms.com

Company Contact
Mark Ainsworth 
ir@lowellfarms.com

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

This news 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 receipt of the required regulatory
approvals for the transfer of the remaining target assets to the Company, the
timing for the completion of the name change of the Company and the
commencement of trading of the Company’s securities under the described
ticker symbols, the anticipated benefits of the described acquisition, the
ability of the Company to operate the acquired assets as currently
contemplated and expanding its operations, the ability of the Company to
successfully achieve its business objectives, including as a result of the
described acquisition, and expectations for other economic, business, and/or
competitive factors. There can be no assurance that such forward-looking
information and statements will prove to be accurate, and actual results and
future events could differ materially from those anticipated in such
forward-looking information and statements. This forward-looking information
and statements reflect Indus’ current beliefs and are 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
applicable regulatory approvals to effect the acquisition of the remaining
target assets, the name change of the Company and associated matters;
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’
annual information form 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.

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/6ef67530-39ae-4693-bbb6-30cab4d89f64)



GlobeNewswire, Inc. 2021
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