US: Lowell Farms has agreement to manage two California dispensaries

Lowell Farms has announced that it has entered into management services agreements with two cannabis retail dispensaries located in Los Angeles, California. Under the terms of the agreements, Lowell Farms will assume operational management of the retail stores, with an option to acquire equity ownership through a non-binding letter of intent.

By integrating retail operations into its brand management and distribution capabilities, Lowell Farms is poised to increase its scale and achieve greater vertical integration. The addition of retail allows the Company greater control over the full supply chain, from production and distribution through the consumer experience.

Ann Lawrence, Executive Chairperson of the Board said: "These agreements mark a significant milestone for Lowell Farms as we continue to navigate the difficult California cannabis landscape."

The management services agreements commenced as of October 1, 2024, and terminate upon the earlier to occur of (i) the Company's acquisition of the equity interests of the retail dispensaries, (ii) by mutual agreement of the applicable parties, or (iii) upon the occurrence of certain other customary circumstances specified in the management services agreements. There can be no assurance that the Company will enter into definitive agreements to acquire the equity ownership of the retail stores in a timely fashion, or at all.

Concurrently with entering into the management services agreements, the Company appointed Ms. Ann Lawrence, a current director, as the Executive Chairperson of the Company. Ms. Lawrence joined the board of directors of the Company in 2022. Prior to entering the cannabis industry in 2018, Ms. Lawrence was a partner and practice group leader at a major global law firm specializing in distressed retail mergers and acquisitions. Ms. Lawrence will lead the Company's retail expansion efforts.