SALINAS, Calif., May 23, 2023 (Globe Newswire) — Lowell Farms Co., Ltd. (“Lowell Farms” or “Company”)” (CSE: LOWL; OTCQX: LOWLF), a leading California-based, vertically integrated cannabis company, is New Willston Associates, LLC (“buyer”) Pursuant to this, our subsidiary, Lowell SR LLC, has established a drying and midstream treatment facility located in Monterey County, California (“institution”) total consideration is US$19.4 million, which includes the purchaser’s underwriting of the existing mortgage on the facility.
Concurrent with the closing of the sale, Lowell SR LLC entered into a 10-year lease of the facility with the buyer. We will continue to dry and process cannabis as permitted since we acquired the facility in 2021. The facility is a 10-acre, approximately 40,000-square-foot facility that we utilize for growing and processing our cannabis. Cultivation and Third Party Partners. The Company purchased the facility in June 2021 for a total of US$19.2 million.
“The sale-leaseback is just one part of our ongoing restructuring efforts to implement cost-cutting measures and increase efficiencies to best position the company to increase value for our shareholders.” Lowell Farms says, ‘Ann Lawrence, Chairman of the Board.
“As previously announced on March 15, 2023, the Company has entered into a letter of intent with its existing shareholders to sell certain intellectual property assets in exchange for debt forgiveness. The transaction was expected to close by the end of the quarter, but is now expected to close by the end of the quarter.”
The aggregate consideration received included the transfer of the mortgage principal balance, unpaid accrued interest and other outstanding liabilities totaling US$10.3 million. The Company values the real estate and capitalized assets at approximately US$15.9 million and expects to recognize a gain of approximately US$3.5 million after considering closing and other transaction-related costs.
About Lowell Farms Co., Ltd.
Lowell Farms Inc. (CSE: LOWL; OTCQX: LOWLF) (“Company”) grows, extracts, manufactures, brands, markets, and distributes. Lowell Farms cultivates artisanal cannabis with a deep love and respect for the plant and prides itself on using sustainable ingredients from seed to sale, Lowell Herb Company, House Weed , Moon, and Kaizen for licensed retailers statewide.
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