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.
