Lowell Farms, Inc. · OTC:LOWLF
Lowell Farms — Investor Presentation (January 2022)
27 slides from Lowell Farms's investor presentation, Jan 14, 2022
Slide 1: Investor Presentation Lowell Farms Inc.
INVESTOR PRESENTATION LOWELL FARMS INC. ( C S E : L O W L ; Q T C Q X : L O W L F ) 1
Slide 2: Use of Non-GAAP Measures and Forward-Looking Statements
USE OF NON - GAAP MEASURES This document refers to EBITDA because certain investors may use this information to assess the Company’ performance and also determine the Company’s ability to generate cash flow . This data is furnished to provide additional information and is a non - GAAP measure and doe
Slide 3: America's First Great Weed Brand
“AMERICA’S FIRST GREAT WEED.BRAND” came a= Robb Report = cd x eS er = See
Slide 4: CSE Listed: Lowell Farms Inc.
● C S E L i s t e d : L o w e l l F a r m s I n c . ( C S E : L O W L ; O T C Q X : L O W L F ) ● F o r m e d b y c o m b i n a t i o n o f I n d u s H o l d i n g s , I n c . a n d L o w e ll He rb Co. in February 2021 ● Mission Highlights ○ Focus on California only ○ L e a d e r s h i p t h r o u
Slide 5: Investment highlights
● Completely unique approach to sourcing virtually unlimite d raw cannabis flower at the lowest - cost anywhere in Ame rica ● “Captive ” distribution: unique capabilitie s in upstream logistics makes us a partner of choice for California re taile rs ● Scale and automation driving cost - leade rship:
Slide 6: California cannabis market landscape
CULTIVATION PROCESSING & MANUFACTURING DISTRIBUTION RETAIL Outdoor ~950 operators 16m sq. ft. canopy Greenhouse ~1200 operators 17m sq. ft. canopy Indoor ~500 operators 4m sq. ft. canopy 950 Licensed Operators: 21 4 Flower brands 14 5 Vape brands 14 2 Concentrate brands 39 Gummy brands 32 Beverage b
Slide 7: Cultivation
CULTIVATION
Slide 8: Sourcing via Lowell Farm Services and captive cultivation
Sourcing via Lowell Farm Services and our own captive cultivation (which gene rates nearly 10 k lbs of high - quality finishe d flowe r every quarter) S t r a i n d i v e r s ifi c a t i o n a n d l e a d e r s h ip Cost through economies of scale Quality le adership under a team of award - winning
Slide 9: Lowell Farm Services midstream processing
● Commissione d in July of 202 1, LFS is a “midstre am processing” service for local growers in the most fe rtile environme nt in America ● Facility is initially commissione d to process approximate ly 250 ,000 pounds of finishe d flowe r annually from dive rse growers in the fe rtile Salinas Valle
Slide 10: California and Monterey County cultivation
● California : G r o w s a n e s t i m a t e d 1 7 m ill i o n po un d s o f cannabis annually, nearly 60 % of total American supply ● Monte rey County: With 4.1 million square fe e t, it is the third large st county in the state poised for explosive growth with recent expansion ordinances that are
Slide 11: 225,000 sq. ft. retrofitted greenhouse in Monterey County
225,000 sq. ft. retrofitted greenhouse in Monterey County, CA Unique state of the art facility generates industry - le ading yie lds at sun - grown costs Nearly 10 ,000 + lbs of flowe rs eve ry quarte r 11
Slide 12: Manufacturing & Products
MANUFACTURING & PRODUCTS
Slide 13: We produce nearly all types of products
We produce nearly all types of products with highly acclaimed: Ja rr e d fl o w e r P r e - r o l ls E d i b l e s Vape products Concentrates 13
Slide 14: Flower and pre-roll products
CLASSIC 3.5 G PACK 14 3.5 G JAR FLOWER 1 G SMOKE
Slide 15: Vape, infused smokes and concentrates
RECHARGEABL E VAPE 15 51 0 CART NE W INFUSED SMOKES LOWEL L DART BUBBLE HASH FULL - MELT HASH AGE CURED ROSIN LIV E ROSIN
Slide 16: Edibles: chocolates, baked goods, gummies, mints
CHOCOLATES BAKED GOODS GUMMIES MINTS 16
Slide 17: Statewide California Distribution
STATEWIDE CALIFORNIA DISTRIBUTION
Slide 18: Distribution facility, fleet and key performance metrics
Facility : 18,000 sq. ft. — all distribution - related inventory activity in the same building under one roof to include post - compliance labeling, retail flower packing, finished goods inventory, order pick/pack and delivery loading Fleet : 22 delivery vans allowing for regular maintenance rotatio
Slide 19: The Best Brand in Cannabis Hits the Road
THE BEST BRAND IN CANNABIS HITS THE ROAD
Slide 20: Lowell premium California cannabis brand
Lowell is a premium California cannabis brand with extremely rare levels of reach and audience A r e p u t a t i o n o f a u t h e n t i c i t y a nd heritage that has become synonymous w i t h q u a li t y a n d r e f i n e m e nt L o w e l l i s b e s t k n o w n f o r i t s d i s t i nc t i v e p
Slide 21: Social media audience and impressions
20 Over 1 million in weekly impressions across all social outlets 3 million impressions on YouTube ● Remains strong and relevant: 2020 and Q4 activity was extremely healthy and remains best - in - class among peers Total Audience: u p 68 % y/y Engagement: u p 132 % y/y Industry leading social media
Slide 22: Lowell Smokes licensing: Illinois and Massachusetts
● I l l i n o i s : L a unch e d A u g u s t 5 t h ● M a ss a chu s e tt s : L a unch e d S e p t e m b e r 1 3 t h ● More states to come ● L i c e n s i n g R o y a l t y T e r m s : 1 5 % o f w h o l e s a le pricing The walking billboard Coming to a store near you 19
Slide 23: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 24: From greenhouse to manufacturing onto shelves
FROM GREENHOUSE (A) TO MANUFACTURING ONTO SHELVES 40 - 45k lbs Flower Annually 25 - 30k lbs Trim Annually Sellable Flower Preroll Flower Fresh Frozen Packaged Flower Individual & Packaged Prerolls Live Resin Vapes Live Resin Concentrates Dry Concentrate Distillate Vape Carts Concentrates Edibles Top
Slide 25: Summary income statement
Q4 Q1 Q2 Q3 Owned Products $7,607 $9,667 $14,539 $12,057 Agency Revs $1,355 $1,230 $535 $352 Distribution Revs $190 $130 $83 $58 Total Net Revs $9,151 $11,026 $15,157 $12,467 Gross Profit $218 ($1,477) $5,744 $64 Gross Margin 2.4% (13.4)% 37.9% 0.5% Adj. EBITDA 1 ($4,227) ($4,569) $740 ($5,187) 1 Ad
Slide 26: Capitalization table and balance sheet highlights
CAPITALIZATION TABLE 12/31/2021 BALANCE SHEET HIGHLIGHTS (e) 26
Slide 27: $LOWL.CN & $LOWLF
S$LOWL.CN & $LOWLF