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INDS - Indus Holdings Inc News Story

C$1.83 -0.3  -13.3%

Last Trade - 04/03/21

Small Cap
Market Cap £70.5m
Enterprise Value £90.7m
Revenue £30.5m
Position in Universe 792nd / 2712

Indus Holdings, Inc. Completes C$34.5 Million Underwritten Public Offering

Mon 21st December, 2020 2:07pm
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SALINAS, Calif., Dec. 21, 2020 (GLOBE NEWSWIRE) -- Indus Holdings, Inc.
(“Indus” or the “Company”) (CSE:INDS; OTCQX:INDXF), a leading,
vertically-integrated, California-focused cannabis company announces the
closing of its previously announced underwritten public offering (the
“Offering”) of units of the Company (the “Units”). The Offering was
conducted by a syndicate of underwriters co-led by Canaccord Genuity Corp. and
Beacon Securities Limited, and including PI Financial Corp. (collectively, the
“Underwriters”) and consisted of the sale of 23,000,000 Units (including
the full exercise of the over-allotment option by the Underwriters) at a price
of C$1.50 per Unit (the “Offering Price”) for aggregate gross proceeds of

Each Unit is comprised of one subordinate voting share of the Company (a
“Share”) and one-half of one Share purchase warrant of the Company (each
full Share purchase warrant, a “Warrant”). Each Warrant is exercisable to
acquire one subordinate voting share of the Company (a “Warrant Share”)
until December 21, 2023 at an exercise price of C$2.20 per Warrant Share,
subject to adjustment in certain circumstances. The Company has received
approval from the Canadian Securities Exchange (“CSE”) to list the
Warrants issued pursuant to the Offering, and the Warrants are expected to be
listed and posted for trading on the CSE under the symbol “INDS.WT” on or
about December 21, 2020, subject to the Company satisfying the remaining
requirements of the CSE.

The Company intends to use the net proceeds from the Offering for the
development of an additional cultivation and production facility and working
capital and other general corporate purposes, as further described in the
prospectus supplement (the “Prospectus Supplement”) dated December 16,
2020 to the final base shelf prospectus (the “Base Prospectus”) of the
Company dated December 11, 2020.

The securities issued pursuant to the Offering were qualified for distribution
pursuant to the Prospectus Supplement and the Base Shelf Prospectus, filed in
each of the provinces of Canada, except Québec, and offered and sold outside
Canada to qualified investors in accordance with applicable law. The
Prospectus Supplement, Base Shelf Prospectus, and the documents incorporated
by reference therein, are available on the Company’s issuer profile on SEDAR

Certain directors and management of the Company (the “Insiders”) purchased
an aggregate of 1,227,800 Units pursuant to the Offering. Participation by the
Insiders in the Offering was considered a “related party transaction”
pursuant to Multilateral Instrument 61- 101 – Protection of Minority
Security Holders in Special Transactions (“MI 61-101”). The Offering was
considered, and ultimately approved by the board of directors of the Company
on December 14, 2020. The Company was exempt from the requirements to obtain a
formal valuation or minority shareholder approval in connection with the
Insiders’ participation in the Offering in reliance of sections 5.5(a) and
5.7(1)(a) of MI 61-101. A material change report in connection with the
participation of Insiders in the Offering will be filed less than 21 days in
advance of the closing of the Offering, which the Company deemed reasonable in
the circumstances so as to be able to avail itself of potential financing
opportunities and complete the Offering in an expeditious manner.

No securities regulatory authority has either approved or disapproved of the
contents of this news release. The securities comprising the Units have not
been and nor will they be registered under the United States Securities Act of
1933, as amended (the “U.S. Securities Act”) or any state securities laws.
Accordingly, the securities comprising the Units may not be offered or sold
within the United States or to or for the account of U.S. persons unless
registered under the U.S. Securities Act and applicable state securities laws
or pursuant to exemptions from the registration requirements of the U.S.
Securities Act and applicable state securities laws. This news release does
not constitute an offer to sell or a solicitation of an offer to buy any
securities of Indus in any jurisdiction in which such offer, solicitation or
sale would be unlawful.

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.   
Office: 1.416.479.9547

Media Contact 
Renata Follmann  

Company Contact 
Mark Ainsworth

Forward-Looking Information and Statements

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 use of net proceeds of the Offering,
the contemplated timing for the commencement of trading of the Warrants, 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. Such 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 and statements are 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
and statements. 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 statements and a description of
additional risk factors that may cause actual results to differ materially
from forward-looking information and statements can be found in Indus’
disclosure documents, such as Indus’ annual information form dated November
9, 2020 and the Base Prospectus, each filed on the SEDAR website at Although Indus has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking information and statements, 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
and statements as there can be no assurance that the plans, intentions or
expectations upon which they are placed will occur. Forward-looking
information and statements contained in this news release are expressly
qualified by this cautionary statement.

The forward-looking information and statements contained in this news release
represent the expectations of Indus as of the date of this news release and,
accordingly, are subject to change after such date. However, Indus expressly
disclaims any intention or obligation to update or revise any forward-looking
information and statements, 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.


GlobeNewswire, Inc. 2020
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