Lowell Farms Archives - Green Market Report

John SchroyerMay 11, 2023


California-based Lowell Farms Inc. (CSE: LOWL) (OTCQX: LOWLF) continued to hemorrhage millions in the first quarter of 2023, posting a $4 million loss that was accompanied by a 39% year-over-year drop in revenue.

Revenue for the quarter plunged to $7.5 million from $12.4 million the same period a year prior, and follows a nearly $25 million loss for all of 2022.

All four of the company’s revenue streams – consumer packaged goods, wholesale products, processing services, and out-of-state licensing – were down sequentially:

  • Consumer packaged goods revenue fell 18% to $4.6 million from $5.6 million.
  • Wholesale revenue was down 9% to $2.5 million from $2.7 million.
  • Processing services dropped 79% to $115,000 from $549,000.
  • Out-of-state licensing declined 23% to $222,000 from $289,000.

All but wholesale were down year-over-year, Lowell reported.

The company also announced that Chief Financial Officer Brian Shure would step down effective immediately and be replaced by Tessa O’Dowd, the company’s senior vice president of finance. O’Dowd will serve as interim CFO, according to the report released Thursday.

CEO Mark Ainsworth didn’t connect Shure’s replacement to the company’s financial fortunes, but said Lowell Farms “wishes him well in his future endeavors,” while touting O’Dowd’s “knowledgeable background in the cannabis sector.”

“Despite a challenging first quarter, we are seeing improvements that we believe indicate the cost-cutting measures and operational efficiencies that we’ve employed are paying off,” Ainsworth said in a release.

“While we did experience a decrease in revenue, we are encouraged by the positive trend in our operating loss. As we continue to navigate a challenging economic environment, we remain focused on improving our financial performance and expanding our product offerings to achieve sustainable growth,” he said.

Lowell reported that its priorities moving forward remain on sustainable growth, with a focus on its “cultivation facilities, improving operational efficiency, and refinement of biological assets,” and noted that it’s been steadily increasing production and harvesting capacities in its home state of California.

The company also highlighted that its brand recognition remains strong in several markets, with many of its branded products leading among consumers in not just its home state of California but also in Arizona, Illinois, and Massachusetts. Lowell products have just launched in Colorado and New Mexico through licensing deals, the company reported.

StaffMarch 16, 2023


The Daily Hit is a recap of the top financial news stories for March 16, 2023.

On the Site

New York Cannabis Coalition Sues State Over Recreational Market Rollout

A group of businesses, hopeful cannabis entrepreneurs, and at least one medical marijuana-supporting physician has filed suit against the state of New York and its cannabis regulators, calling for recreational retail licensing to be opened up immediately to all stakeholders. Read more here.

Lowell Farms Sells Off Parts to Satisfy Debts

Lowell Farms Inc. (CSE: LOWL) (OTCQX: LOWLF) agreed to sell its “Lowell Smokes” and “35s” brands and associated intellectual property to Lowell Brands LLC. This newly formed Delaware limited liability company is being called BrandCo. In return, the company said that noteholders have agreed to forgive all debts the company owed under the Debentures. In addition, the company’s Chairman George Allen is leaving to be replaced by Ann Lawrence. Read more here.

Irwin Naturals Drops Bid to Buy Braxia Scientific

Irwin Naturals Inc. (CSE: IWIN) (OTC: IWINF) said that it no longer plans to buy Braxia Scientific Corp. (CSE: BRAX) (OTC: BRAXF), an unexpected reversal after the two struck a deal to combine forces in January. Closing had been planned for this month. Read more here.

Cresco Labs Records $180M Loss in Q4, Misses on Revenue

Despite record sales last year, Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) saw its revenues start to shrink at year-end as declining prices continue to eat at margins, new financial statements released on Thursday show. Read more here.

More earnings:

Weedmaps Losses Surpass $82 Million for 2022

Leafly Plans New Round of Layoffs After Posting $5 Million Profit in 2022

Tilt Sales Down Nearly $30 Million in 2022, Losses Rise

GrowGeneration Posts $163 Million Loss, CEO Says 2023 Looking Brighter

In Other News


A woman suing Trulieve Inc. over unwanted text messages she says violate the Telephone Consumer Protection Act told the U.S. District Court for the Southern District Court of Florida on Thursday that she had settled her individual claims against the company. Read more here.

4Front Ventures Corp.

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) has appointed cannabis industry veteran Kris Krane to its board of directors to fill the vacancy created from the resignation of Kathi Lentzsch as a director of the company. Krane served as a strategic advisor to the company since stepping down as co-founder and president of Mission Dispensaries after more than a decade with the business. Read more here.

American Patriot Brands

he Securities and Exchange Commission today charged American Patriot Brands Inc., a cannabis cultivation and distribution company, its CEO, and five other entities and individuals for their participation in a long-running scheme in which they raised more than $30 million from more than one hundred investors across the country and siphoned off millions of those funds to enrich themselves. Read more here.

StaffJanuary 12, 2023


The Daily Hit is a recap of the top financial news stories for January 12, 2023.

On The Site

Organigram Earnings Beat

Share prices for Organigram Holdings Inc. (Nasdaq: OGI) (TSX: OGI) were up nearly 8% in early Thursday trading after results illustrated the company’s financial discipline, as it trimmed losses and posted revenues that beat expectations for the first quarter ending November 30, 2022. The Canadian cannabis company reported net revenue of $43.3 million, up 43% from $30.4 million in the same time period last year. Read more here.

Cannabis Sentences Drop

A new report issued by the U.S. Sentencing Commission found that the number of federal cannabis possession sentencings dropped substantially in recent years, from 2,172 in the fiscal year 2014 to only 145 offenders in the fiscal year 2021. For the 70.1% of cannabis possession offenders who received a sentence of imprisonment in the last five fiscal years, the average prison sentence imposed was five months. Unfortunately, the report also noted that prior cannabis possession sentences added to an incarcerated person’s criminal history points resulting in longer sentences. Read more here.

Marijuana M&A Moves

There have been a lot of expectations for consolidation in the cannabis industry, so it seems 2023 is already off to a busy start. Today there are three deals to mention from Akerna, LEEF Brands, and Wee-Cig. Read more here.

Cobb Launches Sunburn

Earlier this month, Brady Cobb rolled out some of the first of 11 dispensaries his company Green Sentry Holdings bought from MedMen (OTC: MMNFF) for $63 million in August. All of the stores will be rebranded as Sunburn Cannabis by the end of the first fiscal quarter.   Green Market Report spoke with Cobb at the launch party for the Orlando storefront. Read more here.

In Other News

Lowell Farms Inc. (OTCQX:LOWLF) has retained Canaccord Genuity Corp. to assist in its ongoing review of strategic alternatives. The Board of Directors has formed a strategic alternatives special committee of independent directors to explore, review and evaluate strategic alternatives that may be available to the Company to maximize shareholder value. The Special Committee will evaluate a full range of strategic and financial alternatives, including, but not limited to, one or more of the following: sale, divestiture, acquisition, or merger that may involve all or part of our business or assets, restructuring, recapitalization or any other strategic transaction that may be identified during our strategic review. Other than as described in this news release, the Company has not made any decisions related to strategic alternatives at this time. The Company cautions that there are no assurances that the evaluation of strategic alternatives will result in the approval or completion of any specific transaction or outcome. The Company does not intend to comment further unless and until the Board of Directors approves a specific transaction, concludes its review of strategic alternatives or determines that further disclosure is appropriate or required.

Cannara Biotech Inc. (OTCQB: LOVFF) announced details of its proposal to consolidate all of the issued and outstanding common shares of the Company on the basis of ten (10) pre-consolidation common shares for every one (1) post-consolidation common shares, subject to the approval of shareholders at the upcoming meeting of shareholders to take place on January 25, 2023, as well as TSXV approval. The Company does not intend to undergo a name change in conjunction with the proposed consolidation. Read more here.

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) announced the opening of its Palm Beach Gardens dispensary as well as the expansion of BlueKudu infused chocolate flavors available on Florida retail menus. Beginning on Friday, January 13Florida patients will have access to two new flavors of BlueKudu artisanal infused chocolates: espresso dark chocolate and caramel milk chocolate. Both flavors will be available for preorder online, in-store, and via statewide delivery. Read more here.


Adam JacksonAugust 10, 2022


Lowell Farms Inc. (CSE: LOWL; OTCQX: LOWLF) second-quarter results missed expectations — showing how producers have been eating their own margins by lowering prices, as many have pivoted toward crisis mode amid a lack of regulatory action and a tightening economic landscape. The company released its financial results for the second quarter ending June 30, 2022.

The company missed total revenue expectations as it delivered approximately $13.2 million during the period — missing the Yahoo Finance Average analyst estimate for revenues of $19.98 million.

Lowell Farms reported revenues of $13.2 million for the second quarter of 2022, an increase of 6% sequentially and down 13% from the same quarter last year — reflecting a 51% reduction in bulk flower pricing year over year. Bulk flower revenue increased 94% sequentially while declining 37% from second-quarter levels last year due to lower pricing.

“California cannabis is in the middle of a fight for survival,” said board chairman George Allen. “There are fewer chairs at the table than there are attendees. We will prevail through innovation and branding, and not by lowering our prices.”

The company reported gross margin of 11.3% in the second quarter versus 12.7% sequentially and 37.9% year over year, reflecting strong bulk pricing in the prior year.

Operating expenses were $4.5 million or 34% of sales for the quarter, versus $4.0 million or 33% of sales in the previous quarter and $6.2 million or 41% of sales in the first quarter last year, reflecting cost reductions realized in the current year.

The company also reported a second-quarter 2022 GAAP net loss of $4.6 million versus a net loss of $4.1 million last quarter, and a net income of $700,000 in the same period last year. Diluted loss per share in the fourth quarter was $2.24 versus diluted earnings per share of $0.11 in the same period last year.

Non-GAAP income before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA) was a loss of $1.1 million in the second quarter — down 22% from a loss of $900,000 in the previous quarter — versus earnings of $700,000 in the same period last year.

The company said it is focused on refining its cultivation processes, genetics, and facilities continue to improve the yield, potencies, and increase margins quarter over quarter.

“To compete with the illicit market, we have to do it with quality and value,” said CEO Mark Ainsworth. “Our whole plan is built on three pillars: exceptionally good cannabis, a brand that people trust, and automation. We are closer than ever to having all three.”

The legal industry will continue to languish behind an expansive illicit market that has always been able to offer more competitive pricing and bypass state taxes, rules and regulations that have burdened operators struggling make it in the world’s oldest legal marijuana market.

California’s Democratic Gov. Gavin Newsom signed into law last month solutions meant to remedy the tax burden for many businesses in the state – eliminating a weight-based tax for cannabis growers but leaving the 15% tax on retail sales. The bill also allows the state to eventually raise retail taxes to make up for the lost cultivation revenue.

Decelerating consumer growth in Western states such as California and Colorado “suggests that the most established markets are nearing saturation of consumer participation, which stands in sharp contrast to the rapid growth happening in new and emerging markets,” according to a report by Colorado-based cannabis data firm BDSA Analytics.

Debra BorchardtJune 24, 2022


Cannabis deal tracker Viridian Capital Advisors is looking at the second half of the year to see what’s in store for the industry. Director of Equity Research Jonathan DeCourcey wrote, “The outlook is bearish for investor returns in the near term as the key catalyst on everyone’s mind, federal legislation, is unlikely to come, and thus valuations will remain depressed for the remainder of the year with further stock declines likely in connection with broader market weakness.” With that said, DeCourcey thinks investors will have to wait until next year for a return to a positive market in the sector. For now, though he has come up with five predictions for cannabis for the back half of 2022. 

Viridian’s Five Predictions are as follows:

  • Federal legislation won’t happen
  • Stock prices will remain depressed
  • Companies may beat earnings estimates
  • California consolidation will continue
  • Smaller companies will outperform larger ones

Despite hopes for a banking bill, it is unlikely that anything will happen in 2022. DeCourcey wrote, “There is insufficient bi-partisan support for Chuck Schumer’s full legislative proposal to pass (requiring 10 Republican votes and full Democrat support) and, as we have said before, the timing is too tight for a stand-alone SAFE Act to be possible this year given the Democrats will first await the Schumer proposal to make the rounds.” Schumer’s proposal is expected to come in August, but that doesn’t give it much time before the midterm elections. 

New legislation could have been the catalyst to jump-start stock valuations. Take that off the table and there isn’t anything really big to move the needle. The overall broader market has been beset with recession fears and interest rate hikes. That also doesn’t help stock prices. However, depressed stock prices could combine next year with strong company earnings and that could lead to a recovery, but those hopes are pushed into 2023. 

Companies struggled with revenues and earnings at the beginning of 2022. Lingering Covid issues, wholesale price declines, and integration issues for newly combined companies caused some strong headwinds. DeCourcey thinks that these challenges are winding down, but cautions that there could be lingering inflation pressures. Still, expectations have been reset and if the New York market actually opens in 2023 then next year could see some strong growth. Plus, companies are going to be able to start reporting New Jersey sales figures, which are looking very good. Those New Jersey numbers could spark some earnings beats and that would be welcome news. 

“The proposed elimination of the California cultivation tax, which we expect to take effect next month, is a game-changer for California cannabis companies reducing the cost of production on outdoor growers by as much as 50%,” said the report. DeCourcey thinks the additional cash will lead to more transactions and motivation for M&A. The improving tax situation could also entice larger MSO’s to come to the market. “For investors, we expect the easier operating conditions and looming consolidation will result in outperforming returns for California-centric stocks in the second half and into next year.”

Finally, the report noted that scale does not necessarily equate to winning. Large companies get the attention, but the smaller and mid-size companies could have better growth potential with the likelihood of getting acquired. Smaller company stocks also outperformed the larger ones by declining by a smaller percentage. Dropping 47% on average versus 55% declines for larger companies. “Our top picks for 2H investment fall within the category of smaller and medium-sized companies. These names include Ascend (OTC: AAWH), AYR Wellness (OTC: AYRWF), Cansortium (CNTMF), Lowell Farms (LOWLF) and Schwazze.”

StaffMay 25, 2022


The Daily Hit is a recap of the top cannabis business stories for May 25, 2022.


Live Blog from WEF 2022 in Davos Switzerland

Green Market Report editor-in-chief Debra Borchardt blogs live from the Medical Psychedelics Series, at the World Economic Forum being held in Davos Switzerland. Read more here.

Ayr Wellness Inc. Approved in New Jersey

Ayr Wellness Inc. (CSE: AYR.A) (OTCQX: AYRWF) announced that the New Jersey Cannabis Regulatory Commission approved the Company for adult-use cannabis sales in the Garden State. “We are thrilled to be approved for adult-use sales in New Jersey and to have all three dispensaries cleared simultaneously to open for adult-use,” said Jonathan Sandelman, Founder, Chairman and CEO of Ayr. “To date, Central Jersey has the lowest number of dispensaries per capita, leaving its population under-served compared with the rest of the state. Read more here.

Verano Holdings Corp.

Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) announced its financial results for the first quarter ending March 31, 2022, with revenue increasing 67% to $202 million versus last year. Revenue for Verano fell  from the fourth quarter’s $211 million. The net loss in the first quarter 2022 was $7 million, compared to a loss of $2 million in the first quarter 2021. Read more here.

Jushi Holdings Inc.

Jushi Holdings Inc.  (CSE: JUSH) (OTCQX: JUSHF) released its financial results for the first quarter of 2022 ending March 31, 2022, with revenue increasing 48% over last year to $61.9 million. Jushi said sales fell 6% from the fourth quarter’s revenue of $65.9 million. The company delivered a net loss of $14.3 million, which was trimmed from last year’s net loss of $26 million. Read more here.


Rhode Island Legislature Approves Marijuana Legalization Proposal

Following floor debates in both chambers of the General Assembly earlier today, a majority of Rhode Island legislators have approved legislation to legalize, regulate, and tax cannabis for adults. The bill will be transmitted to Gov. Dan McKee who has previously indicated he will likely sign the measure. With the governor’s approval, Rhode Island will become the 19th state to end marijuana prohibition. Read more here.

The Valens Company Inc.

The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS), a manufacturer of branded cannabis products, provided an update on its recent recreational market share in Canada. Tyler Robson, Chief Executive Officer of The Valens Company, said, “We continue to expand our recreational market share as we develop strength within our brand portfolio through products that continue to resonate with consumers.” Read more here.

Item 9 Labs Corp.

Item 9 Labs Corp. (OTCQX: INLB), a vertically integrated cannabis dispensary franchisor and operator announced today that it has signed a definitive agreement to acquire Sessions Cannabis, one of Canada’s largest cannabis retail franchisors. “This is a transformative acquisition that fast-tracks our entry into the Canadian market and brings tremendous value to our shareholders,” said Item 9 Labs Corp. CEO Andrew Bowden. Read more here.

Lowell Farms Inc.

Lowell Farms Inc. (CSE: LOWL; OTCQX: LOWLF), a California cannabis cultivation company and maker of brand Lowell Smokes, is announcing the acquisition of advanced pre-roll production equipment and capabilities from Canadian cannabis brand All Good Collective. The acquisition will accelerate Lowell Farms’ ability to offer end-to-end automation of large-scale pre-roll production. Read more here.

Ayr Wellness Inc., Herbal Remedies Dispensaries, LLC

Ayr Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF), a vertically integrated U.S. multi-state cannabis operator, today announced it has closed the definitive agreement to acquire Herbal Remedies Dispensaries, LLC, an operator of two licensed retail dispensaries in Quincy, Illinois. Read more here.

Decibel Cannabis Company Inc.

Decibel Cannabis Company Inc. (TSXV: DB) (OTCQB: DBCCF), a cannabis producer, announced its first quarter financial results for the three month period ending March 31, 2022. “Decibel remains on track to achieve its previously communicated targets, which is a testament to the focus on our strategic plan, and particularly our New, Unique and Innovative products and dedication to our customers”, said Paul Wilson, CEO of Decibel. Read more here.

TILT Holdings Inc., Innovative Industrial Properties, Inc.

 TILT Holdings Inc. (NEO:TILT) (OTCQX: TLLTF), a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development and retail, has signed an amendment to its previously announced definitive agreement to sell its White Haven, Pennsylvania facility. The Amendment allows TILT and Innovative Industrial Properties, Inc. to extend the end of the investigational period of the transaction contemplated to a date that is on or before June 17, 2022. Read more here.

StaffAugust 31, 2021


Lowell Farms

Lowell Farms Inc.  (CSE: LOWL)(OTCQX: LOWLF) reported that it has completed an $18 million non-brokered private placement of common equity. Proceeds will be used for working capital purposes, automation investments, and expansion into new markets. Company insiders bought an aggregate of 2,900,000 Units and the units were priced at $1. Shares were lately selling at $1.18.

“We are grateful for the support of our investors who share our conviction and excitement in our mission to capture an enormous market opportunity in front of us,” said George Allen, Chairman of Lowell Farms. “This financing allows the Lowell Smokes brand, one of the strongest cannabis brands in the country, to expand geographically and increase scale in its home state of California.”

BeLeaf Medical

AFC Gamma, Inc. (NASDAQ: AFCG) today announced it has provided a credit facility of $23 million to Missouri operator BeLeaf Medical, LLC. The credit facility is designed to provide BeLeaf with the capital necessary to expand its three Missouri cultivation facilities in Lakefront, Jonesburg and Cherokee, as well as purchase the Jonesburg cultivation facility. The Company has nearly completed construction on ~25,000 square feet of canopy between its locations and plans to add an additional ~16,000 square feet.

“As we continue our expansion in Missouri, we are excited to have the support and expert partnership of AFC Gamma,” said Kevin Riggs, President of BeLeaf Medical, adding, “At BeLeaf, we are steadfast in our production of high-quality flower and the development of innovative, best-in-class products resulting in remarkable growth and impressive customer loyalty. We look forward to bringing our exceptional products and brands to consumers in new markets, as this has been our highest priority every time we looked towards expansion.” Missouri legalized the use of medical marijuana in 2018, with sales beginning in October 2020. Since the program launched in October, according to the Missouri Medical Cannabis Trade Association, sales in Missouri have hit $91 million, with 130,000+ registered patients as of July 31, 2021.


Purchasing platform Mainstem completed its latest round of funding, securing $5 million in its recent Series C raise. Mainstem’s funding to date tops $11 million, much of it from the cannatech investors Merida Capital Holdings. Enjoying 213% in sales growth between 2017-2021, Mainstem was recently honored by INC. Magazine in its prestigious annual ‘5000 Fastest-Growing Private Companies in America‘ list. “This is an extremely meaningful milestone for us,” says Mainstem co-founder and CEO ALEN NGUYEN. “This recent capital raise is a reflection of where our industry is heading as well as a testament to the team we have worked so hard to build. Today’s cannabis companies need to utilize robust tracking solutions to maintain inventory levels and serve customers in real time. Our first-to-market SaaS technology provides that support and helps to bring our industry forward as it rapidly expands, offering merchandising convenience for our customers, wherever they are.”

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