Indus acquires Lowell Herb, Lowell Smokes
2021-02-25 11:38 MT - News Release
Indus Holdings Inc. has acquired 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 leading 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 US$39.0 million and is comprised of a cash payment of US$4.1 million and the issuance of 22,643,678 Subordinate Voting Shares of the Company (of which 5,000,000 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 (CSE) 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.
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