Canada's Indus Holdings buys Miley Cyrus-backed pot producer

Lowell Farms

25/02/2021 17:45

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. 
    The Canadian company plans to change its name to Lowell
Farms Inc. 
    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. 
 
    

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