IGC Pharma subsidiary agrees to asset sale valued at $2.7 million

IGC Pharma, Inc. (NYSE:IGC), a small-cap pharmaceutical company with a market capitalization of $37.82 million, announced Wednesday that its wholly owned subsidiary, Holi Hemp LLC, doing business as HH Processors, has entered into an agreement to sell certain assets to Wellness Essentials Northwest Inc., a Washington corporation. The Sale of Assets and Manufacturing Agreement was executed on September 29, 2025, according to a statement in a press release. According to InvestingPro data, IGC operates with moderate debt levels but has faced profitability challenges, reporting negative EBITDA of $6.38 million in the last twelve months.

Under the terms of the agreement, Wellness Essentials Northwest will purchase equipment, inventory, and a ready-to-move facility from Holi Hemp. The buyer will also assume operational responsibilities including employees, utilities, lease obligations, and other operating expenses. The transaction is valued at approximately $2.7 million, subject to adjustment following completion of an auditor’s valuation review.

The agreement includes a provision for preferential supply rights to be provided to Holi Hemp by the buyer. Additionally, if Wellness Essentials Northwest sells or transfers the operating business to a third party within five years of the agreement, Holi Hemp will be entitled to receive 10% of the net proceeds from such a sale. Get deeper insights into IGC’s financial health and growth potential with InvestingPro, which offers exclusive analysis and 7 additional ProTips for informed investment decisions.

The completion of the transaction is contingent upon customary closing conditions, including internal corporate approvals and the auditor’s valuation review.

This information is based on a statement in a press release filed with the Securities and Exchange Commission.

In other recent news, ICL Group Ltd. announced details regarding its upcoming supplemental dividend distribution. The company confirmed that the total dividend amount will be approximately $55 million. Shareholders receiving payment in U.S. dollars will receive a dividend of $0.04260 per share. For those opting for payment in Israeli Shekels, the dividend per share will be ILS 0.1442436. This calculation is based on the representative exchange rate published by the Bank of Israel. These developments follow a recent SEC filing and were outlined in a press release.

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