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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 £91.9m
Revenue £30.8m
Position in Universe 798th / 2713

Indus Holdings, Inc. Announces Updated Fourth Quarter Guidance

Thu 3rd December, 2020 9:05pm
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SALINAS, Calif., Dec. 03, 2020 (GLOBE NEWSWIRE) -- Indus Holdings, Inc.
("Indus” or the “Company”) (CSE:INDS; OTCQX: INDXF), a leading,
vertically-integrated, California-focused cannabis company, announces updated
guidance for the fourth quarter ending December 31, 2020. All figures stated
are in US Dollars.

Based on preliminary financial information and subject to year-end closing
adjustments, as updated guidance, Indus expects net revenue for the fourth
quarter to be approximately $9.5 million to $11.5 million, a decline from the
previously expected $14 million.

The updated guidance is the direct result of continued suppressed cultivation
yields from our cultivation resulting from the wildfires in late summer, early
fall. Previously, the Company anticipated some continued deterioration in
yields, however losses have been more pronounced than anticipated.

The Company believes that disruption is temporary in nature and should not
impact our expectations for either the first quarter or the balance of 2021.
Furthermore, the Company believes that the addition of recently installed
Argus automated environmental control systems should mitigate future losses in
the event of a recurrence. Such environmental controls allow the cultivation
team to swiftly respond to erratic changes in the external environment like
those we saw earlier this year.

“The decision to update our previously expected financial results for the
fourth quarter 2020 was not taken lightly but we feel that it is the prudent
one to make,” added George Allen, Chairman of the Board for Indus Holdings,
Inc. “We remain focused on our commitment to building cannabis cultivations
at unprecedented scale in California and on driving long-term value for our
shareholders. With the right team in place, we have taken a meticulous
approach this year to reevaluate our efficiencies and strategic planning –
with a flexibility to adapt – and we saw great improvements so far; and we
will continue to do so to respond accordingly.”

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
Indus Holdings, Inc.
ir@indusholdingco.com
Office: 1.416.479.9547

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 the contemplated net
revenue for the fourth quarter 2020, that the Company’s greenhouse will not
experience prolonged suppressed yields resulting from the wildfires in 2020,
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; prolonged or more detrimental than anticipated impact on
production yields resulting from the wildfires in 2020; 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.

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)



GlobeNewswire, Inc. 2020
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