2023-05-23 | CSE:LOWL | Press release

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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.

Lowell Farms Inc. Media Contact

pr@lowellfarms.com

Lowell Farms Co., Ltd. Investor Information Inquiries

Bill Mitras

416.479.9547

ir@lowellfarms.com

Lowell Farms Co., Ltd. Company contact

Mark Ainsworth

408.605.2774

ir@lowellfarms.com

Forward-Looking Information and Statements

This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act. may contain statements that may constitute Such forward-looking information and forward-looking statements do not represent historical facts, information or current circumstances, but only our beliefs regarding future events, plans or goals. , many of which, by their very nature, are inherently uncertain and beyond our control. Generally, such forward-looking information or forward-looking statements are not described as “planned,” “anticipated,” “anticipated,” “anticipated,” “budgeted,” or “anticipated.” can be identified by the use of forward-looking terms such as “”, “estimate”, “predict”, “intend”, “expect”, “unexpected”, or “believe”, or variations of such words or phrases, or specific actions, May include statements that events or outcomes “could happen”. , “could”, “would”, “may” or “will be”, “continue”, “occur” or “will be achieved”. ” Forward-looking statements contained herein are not guaranteed to be accurate, and actual results and future events may differ materially from those projected by such forward-looking information and statements. Information and statements reflect our current beliefs and are based on information currently available to us and assumptions we believe to be reasonable.

Forward-looking information is subject to known and unknown risks, uncertainties and the possibility that our actual results, levels of activity, performance or achievements may differ materially from those expressed or implied by such forward-looking information. may be affected by certain other factors. Such risks and other factors may include, but are not limited to: Our available funds and the anticipated use of such funds. potential legal action against us or our directors and officers; General business, economic, competitive, political and social uncertainties. general capital market conditions and market prices of securities; operating and development costs. competition; changes in laws or regulations affecting us; Good production level and output. Price stability for cannabis products. Level of demand for cannabis products. Availability of third-party service providers and other inputs for our operations. Shortage of qualified and skilled workers or loss of key individuals. Risks and delays due to the COVID-19 pandemic. A description of additional assumptions used in preparing such forward-looking information, and a description of additional risk factors that could cause actual results to differ materially from the forward-looking information, is available in our disclosure documents. listed in Annual Information Form filed on the SEDAR website www.sedar.com, our Form 10-K for the fiscal year ended December 31, 2022, and our Form 10-K for the quarter ended March 31, 2023. ‘s Form 10-Q is available on the SEC website (www.sec.com). Although we have made every effort to identify important factors that could cause our actual results to differ materially from those contained in forward-looking information, there are factors that could cause results to differ materially from those anticipated, estimated or intended. There may be other factors that could result in Readers are cautioned that the preceding list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information. There is no guarantee that its plans, intentions and expectations will come to fruition. Any forward-looking information contained in this news release is expressly qualified by this cautionary statement.

The forward-looking information contained in this news release represents our expectations as of the date of this news release and is therefore subject to change after that date. However, we do not intend to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities laws. We expressly disclaim any obligation.

Neither the Canadian Stock Exchange nor its regulatory service providers consider or accept responsibility for the adequacy or accuracy of the content of this news release.



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