SALINAS: Indus Holdings Inc., a vertically integrated cannabis company, announced that it has entered into a Letter of Intent (LOI) to lease a neighboring facility to host expanded cultivation operations.
The LOI contemplates a 20-year lease with a 5-year extension option.
“This contemplated expansion is not just another leg in our journey towards becoming the largest producer in American cannabis,” said Indus Holdings Chairman George Allen.
“It is also about collecting all our IP along with recent horticultural and technological developments into a purpose-built facility that will yield a wider variety of flower for the world’s most discerning customers.”
Indus has selected the facility for its scale, existing attributes and lease economics. The facility is 300,000 square feet which will more than double our cultivation footprint when operational.
The Company anticipates that the facility will contribute upwards of 50,000 lbs of annual flower production capacity when fully operational. In order to retrofit the facility for this volume level the Company anticipates that it will take approximately 12 months to bring the facility online in preparation for a 2022 first harvest.
The facility is located nearby to our other Monterey County operations and is currently partially licensed for cannabis operations. The arrangement is subject to further diligence as well as the negotiation and execution of definitive agreements, and there is no guarantee that the Company and the landlord will reach final agreement on the terms of the lease contemplated in the LOI.
Indus Holdings Inc. (CSE: INDS; OTCQX: INDXF) is a vertically-integrated cannabis company with advanced production capabilities, including cultivation, extraction, manufacturing, brand sales & marketing, and distribution. Founded in 2014 and based in Salinas, California, Indus offers services supporting every step of the supply chain and an extensive portfolio of award-winning brands, including Cypress Cannabis, House Weed, The Original Pot Co., MOON, Humble Flower, and Kaizen Medicinals. Indus Distribution, a division of Indus Holdings, Inc., is a leading distributor of cannabis products, servicing an extensive portfolio of brands and licensed retailers.