Indus Holdings Inc. (OTCMKTS:INDXF) announced termination of its impending acquisition of W Vapes assets that was announced in May last year. The decision to terminate the transaction corresponds with the recently announced asset acquisition between W Vapes and Planet 13.
Indus Holdings terminates the transaction with W Vapes
As per the terms of termination of the transaction, Indus will not be obligated to complete the acquisition of the assets from W Vapes. Equally, the Las Vegas facility where local cultivation operations take place that Indus bought on December 6 last year will be sold to Planet 13 affiliates. Already Indus has received around $50,000 cash payment following singing and closing of transaction after regulatory approvals. The company expects to receive more cash, with net proceeds expected to be around $2.8 million.
Indus Holdings’ board chairman, George Allen stated that the acquisition and related capital expenditure didn’t make any strategic sense for the company. He added that the termination of the transaction is in line with the company’s focus in the California cannabis market which is the largest market globally. Allen confirmed that the company sees huge opportunity in California where they plan to redeploy capital with greater synergies supporting Indus’ strategy and its profitability path. Indus will now concentrate in California where they have finalized renovation of two facilities with the third expected to be complete by August.
Acquisition of W Vapes valued at $20 million
The company entered a definitive agreement to acquire W Vapes assets in a cash plus stock transaction. The acquisition sought to solidify the California-based company’s market position in the cannabis sector to Oregon and Nevada. The company’s co-founder and CEO Robert Weakley stated that they were expanding their footprint to take advantage of Oregon and Nevada’s opportunities.
The deal was valued at $20 million, and Indus Holdings was to pay for the assets with $10 million worth of its common shares priced at CA$15.65 a share and $10 million cash consideration.
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