Indus Holdings Inc logo

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 £71.0m
Enterprise Value £91.3m
Revenue £30.6m
Position in Universe 796th / 2710

UPDATE 1-Indus Holdings buys Miley Cyrus-backed pot producer

Thu 25th February, 2021 6:25pm
(Adds details on ticker change in fifth paragraph, share
movement in sixth paragraph)
    Feb 25 (Reuters) - Pot producer Indus Holdings Inc  INDS.CD 
said on Thursday it bought California-based rival Lowell Herb Co
for $39 million, adding a brand backed by Miley Cyrus and Chris
Rock to its offering of products.
    Consolidation is heating up in the cannabis sector as
companies pursue scale to benefit from the coronavirus-driven
surge in weed sales and likely relaxation of U.S. federal
prohibitions after Joe Biden's win in the presidential election.
    Canadian pot producer Aphria Inc  APHA.TO  said in December
it would merge with rival Tilray Inc  TLRY.O , creating the
world's largest cannabis producer by sales. 
    Indus paid $4.1 million in cash and issued 22.6 million
shares to Lowell Herb, which also raised money from celebrities
such as Mark Ronson and Sarah Silverman.
    California-based Indus said it plans to change its name to
Lowell Farms Inc as part of the deal, adding that its ticker
symbols on the Canada Securities Exchange would become LOWL and
LOW.WT from March 5.
    The company's shares rose nearly 6% to C$2.02 in afternoon
trading.
    It also said that Lowell Herb-owner, The Hacienda Group,
would continue to produce the brand's products, which include
smokes, cannabis flowers, oil and vapes, for an interim period. 
 
    


($1 = 1.2570 Canadian dollars)

 (Reporting by Rithika Krishna in Bengaluru; Editing by Aditya
Soni)
 ((Rithika.Krishna@thomsonreuters.com;))
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