Indus Holdings, Inc. (CSE: INDS), announced that it has signed a definitive agreement to acquire the assets of W The Brand ("W Vapes"), a multi-state manufacturer and distributor of cannabis concentrates, cartridges and disposable pens, in a cash and stock transaction. The transaction solidifies Indus' position as a market leader and dominant force in the cannabis industry through expansion of its operations beyond California into the cannabis-friendly states of Nevada and Oregon.
"We are excited to expand the Indus footprint as it creates further awareness to our brands and more opportunities for our incredible team," commented Indus Co-Founder and Chief Executive Officer Robert Weakley. "Having established a dominant presence in the world's largest cannabis economy, we are taking a natural step forward, and we're excited to introduce Nevada and Oregon consumers to our lineup of award-winning Indus brands."
- In Nevada, Indus will acquire a recently renovated 24,000-square foot cultivation and production facility with expansion capacity to bring its total footprint to nearly 76,000 square feet.
- The Nevada facility is less than two miles from the Las Vegas Strip, a location that links Indus to 40 local dispensaries and a robust tourism sector that attracts 42 million visitors annually. Nevada's cannabis industry has experienced unprecedented growth since recreational use became legal in January 2017, with an estimated $1 billion in sales projected by 2024, according to the Nevada Dispensary Association.
- To the north, Indus is expanding into Oregon with an operation that includes a recently opened, 6,000 square-foot manufacturing facility near downtown Portland that includes a warehouse, office and lab space, as well as extraction capabilities.
- With the turn-key capabilities of the W Vapes operations, the transaction allows the expansion of Indus' award-winning portfolio of California brands into Nevada and Oregon.
- W Vapes currently manufactures and produces multiple internally developed brands.
- The transaction is expected to be revenue accretive in 2019, and EBITDA accretive in 2020.
- The transaction is expected to close in the fourth quarter of 2019.
Summary of Terms:
Under the terms of the agreement, Indus will acquire the assets of W Vapes with consideration to W Vapes shareholders consisting of $10 million in shares of Indus Holdings, Inc. common equity (based on a deemed value of CDN$15.65 per share) and $10 million in cash.
Through the transaction, Indus will acquire cultivation, manufacturing, and distribution licenses and operations in Las Vegas, Nevada and Portland, Oregon. All intellectual property and other operating assets of the Nevadaand Oregon businesses will also be acquired.
Completion of the acquisition is subject to customary closing conditions.
ABOUT INDUS HOLDINGS, INC.
Indus Holdings, Inc. (CSE:INDS) is a vertically integrated cannabis company with world-class production capabilities, including cultivation, extraction, manufacturing, brand sales & marketing, and distribution. Founded in 2014 by hospitality veteran Robert Weakley and based in Salinas, California, Indus offers services supporting every step of the supply chain and an extensive portfolio of award-winning brands, including House Weed, The Original Pot Co., MOON, Acme, Beboe, Dixie Elixirs & Edibles, and Orchid Essentials. Indus Distribution, a division of Indus Holdings, Inc., is a leading distributor of cannabis products, servicing an extensive portfolio of brands and licensed retailers.