Indus Holdings Inc (OTCMKTS:INDXF) posted revenues of $9.9 million in Q2 2020. Its owned brands reported a 73% growth, whereas agency brands declined to 20% in Q2 2020.
CEO of Indus, Mark Ainsworth, said the results in Q2 2020 strengthened its efforts to improve profitability beyond the estimates. It posted better results in Q2 2020 because of strategic planning implementation in the past few quarters.
Events after Q2 2020
Terminates acquisition deal
Indus terminated the takeover deal of W Vapes and acquired the Las Vegas facility on December 6, 2019. It intends to divest this Las Vegas Facility to Planet 13’s affiliates. As per the terms of the deal, Indus amassed cash of $500,000 on inking the pact. The company will also net an additional $2.8 million on closing the deal.
Chairman of Indus, George Allen, said the company terminated W Vapes’ takeover deal to focus on its California operations. California is the largest cannabis market, and Indus intends to redeploy its capital in this burgeoning market to derive growth going forward.
Renovation of Greenhouses in California
As part of its plans to sustain growth and derive profits, Indus renovated 6 rooms out of eight in Greenhouse 3. The company also planted these 6 rooms as of July 27, 2020. It will commission the balance of two rooms by the end of August 2020. With this renovation, its grow rooms will increase to 28 for cultivation. The company previously holds eight grow rooms as of February 2020.
Following the renovation, Indus harvesting capacity will increase to 45,000 pounds in Q4 2020 because it added 110,000 Sq. Ft. of additional cultivation.
Its strains under the Cyprus Reserve qualify for THC potency of between low 30’s and high 20’s. The company refined its genetics, enhanced cultivation processes, and improved the facilities to get higher yields and potency.
Refines retail marketing strategy
Indus refined its marketing strategy considering the behavior of consumers and improve its retail technology. The company inked a pact to offer interactive packaging services for all the brands owned by Indus.
Indus is gearing up to provide world-class service by refining the ordering and processing technologies. All these efforts help the company to improve revenues soon.
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