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

In connection with this acquisition, the company intends to complete a change in its corporate name to Lowell Farms Inc.

February 25, 2021

SALINAS, Calif., Feb. 25, 2021 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Indus Holdings, Inc., a 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 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 $39 million and is comprised of a cash payment of $4.1 million and the issuance of 22,643,678 Subordinate Voting Shares of the Company (of which 5 million 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 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.