Houston, San Antonio cos. update plans for cannabis-focused merger, cancel spinoff.
Houston-based Indoor Harvest Corp. (OTCQB: INQD) and San Antonio-based Alamo CBD LLC announced on June 5 a series of updates regarding their plans to create a company focused on medical cannabis.
Since the companies announced in January they were working on a potential deal, Indoor Harvest had planned to acquire Alamo and then spin off its vertical produce-related operations. Now, the companies have agreed to no longer pursue the spinoff, among other changes to the deal that was reached in April.
Under the revised agreement, Indoor Harvest will acquire Alamo for more than 7.58 million shares of common stock, down about 70 percent from the roughly 25.28 million shares originally announced. Instead of spinning off Indoor Harvest’s vertical farming assets, the company will establish an equipment division to oversee that portion of the business and use third-party seller representatives for commercial and retail sales.