Indus Holdings, Inc. Announces an Update to Cultivation Expansion Plans
The Company is pivoting expansion efforts to a new cultivation campus that may have long-term sustainable advantages over its peers
SALINAS, Calif., Jan. 07, 2021 (GLOBE NEWSWIRE) -- Indus Holdings, Inc. ("Indus” or the “Company”) (CSE:INDS; OTCQX: INDXF), a leading, vertically-integrated,
California-focused cannabis company, announces an update to the expansion plans previously announced November 17th of last year. The Company has signed a new letter of intent (“LOI”) and is
electing to pursue an alternative path to its expansion, which includes the planned construction of a purpose-built, state-of-the-art cannabis cultivation and processing facility that will combine
modern technology with an industry-leading cost-structure to produce the highest quality cannabis.
While the Company had previously been in discussions regarding a handful of retrofit greenhouses, Indus now anticipates approximately a twelve-month construction cycle that will yield one of the largest cannabis campuses anywhere in the world. After careful consideration of its options, Indus has decided to pursue construction of a new, purpose-built facility that is nearby to its existing operations. The choice in selecting the new facility is driven by a combination of attractive factors that include:
- Superior growing climate
- Ready and immediate access to electrical power
- A substantially lower cultivation tax-rate
- A less expensive lease structure
- Expansion capabilities that will accommodate in excess of 1.5m square feet
The LOI contemplates a land-lease from a developer that has prepared the property for cannabis cultivation. Indus will be responsible for the construction costs of the buildings on the property using cash raised in the recent equity offering to finance the first stage of the buildout, currently anticipated to be between 250,000 and 320,000 square feet of greenhouse operations. Indus has the exclusive option to expand on the property but is not obligated to do so. It is anticipated that the property under consideration could accommodate nearly 1.5 million square feet of modern mixed-light greenhouses.
The transaction is subject to final site due-diligence and negotiation of construction contracts as well as the finalization of a lease, which is expected to be completed during the first quarter of 2021. In the event that the company pursues the transaction contemplated in the LOI, Indus anticipates that the site will be ready for operation in the first half of 2022.