California-based Indus Holdings, Inc. (OTCQX: INDXF) is shopping for Lowell Herb Co. and Lowell Smokes in a deal valued at $39 million. The acquisition contains trademark manufacturers, product portfolio, and manufacturing belongings of Lowell from The Hacienda Group efficient instantly. The corporate will change its identify to Lowell Farms Inc.
“The mixture of Indus and Lowell will create a number one producer of California cannabis and the following step for the primary nice American cannabis model,” stated Gregory Heyman, founding father of Beehouse, Lowell’s largest investor. “The Indus group’s dedication to rising wonderful cannabis and the communities they serve additionally realizes Lowell’s mission to normalize cannabis in America.”
The deal consists of a money cost of $4.1 million and the issuance of twenty-two,643,678 Subordinate Voting Shares of the Firm (of which 5,000,000 might be held in escrow to safe sure indemnification obligations undertaken by the sellers within the transaction). The share consideration was issued in a non-public placement transaction and the corporate has agreed to register such shares for resale in the US. Hacienda stated it has agreed to proceed to supply Lowell merchandise for an interim interval pending the completion of the switch of sure regulatory belongings.
It’s anticipated that Lowell Farms Subordinate Voting Shares and Warrants will start buying and selling on the Canadian Securities Alternate (CSE) on March 5, 2021, beneath the ticker symbols LOWL and LOWL.WT, and that the Subordinate Voting Shares will start buying and selling on the OTCQX efficient on March 5, 2021, beneath the ticker image LOWLF.
“The cannabis trade is awash in manufacturers competing for our consideration, however Lowell has risen to the highest of the fray as a model that concurrently empowers a motion, welcomes the curious, and greets the reacquainted all with a grace and class that different manufacturers can solely aspire to,” stated George Allen, Chairman of the Board for Indus Holdings, Inc. “Each useful resource beneath our management might be employed in unlocking Lowell’s full potential.”
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