Lowell Farms, Inc. · OTC:LOWLF
Lowell Farms — Investor Presentation (August 2021)
32 slides from Lowell Farms's investor presentation, Aug 3, 2021
Slide 1: Investor Presentation - Lowell Farms Inc.
1 INVESTOR PRESENTATION LOWELL FARMS INC. (CSE:LOWL; QTCQX: LOWLF)
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” iw a-= Robb Report ie > piecing
Slide 4: CSE Listed: Lowell Farms Inc.
● CSE Listed: Lowell Farms Inc. (CSE: LOWL; OTCQX: LOWLF) ● Formed b y combination of Ind us Holdings, Inc. and Lowell Herb Co. in February 2021 ● Mission Highlights ○ Focus on California only ○ Leadership through scale and brands ○ Consolidate supply - side capacity ○ Build large - scale cultivatio
Slide 5: Cultivation at massive scale growing high quality flower
5 Cultivation at massive scale growing high quality flower ● 225k sq ft greenhouse in operation ● In planning phase for additional greenhouse ● Further expansion plans in development Diversified manufacturing capabilities and infrastructure spanning across all product categories Lowell, a rich brand
Slide 6: California cannabis value chain and licensed operators
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: 214 Flower brands 145 Vape brands 142 Concentrate brands 39 Gummy brands 32 Beverage bran
Slide 7: Cultivation
CULTIVATION
Slide 8: Lowell Farm Services
LOWELL FARM SERVICES
Slide 9: Salinas processing facility acquisition
5 Watch Video: https://vimeo.com/568620561 ● In June of 2021, Lowell acquired a unique 10 acre newly - licensed processing facility in Salinas design - built for downstream processing in the cannabis sector ● Property will house our newest business unit: Lowell Farm Services
Slide 10: LFS midstream processing service
● LFS is a midstream processing service for local growers in the most fertile environment in America ● Facility is initially commissioned to process approximately 250,000 pounds of finished flower annually from diverse growers in the fertile Salinas Valley and surrounding areas ● Processing is a mas
Slide 11: California and regional cannabis growing markets
● California: Grows an estimated 17 million pounds of cannabis annually, nearly 60% of total American supply ● Monterey County: With 4.1 million square feet, it is the third largest county in the state poised for explosive growth with recent expansion ordinances that are welcoming to large - scale c
Slide 12: Operations Impact from Acquisition of LFS
Operations Impact from Acquisition of LFS ● Compliments our cultivation with access to a massive and diverse raw material flow at compelling cost levels without all the capex and commodity risk ● Investments in logistics and automation to drive affordability... ● A brand that has selection of choice
Slide 13: California as the home of cannabis cultivation
● America’s home of cannabis, perfect opportunity to build brand and loyalty ● Supply is very fragmented: average players are very small with much higher cost structures ○ Over 2,50 0 growers with average canopy of 19k sq. ft. ● The black market, while still a factor, is ineffective at competing for
Slide 14: Fragmented, sub-scale cultivation operators
14 ● But, the vast majority of these operators are sub - scale ● The top 10 operators only comprise ~7% of the market’s supply ● The “bottom - half” of the market’s supply is coming from 2,200 operators with less than 12k in canopy (1/20th that of Lowell Farms) There a re >2,500 farms statewide grow
Slide 15: Sourcing, strain diversification and scale
Sourcing via LFS and our own cultivation Strain diversification and leadership Cost through economies of scale Quality leadership under a team of award - winning growers Develop portfolio of facilities that each have sufficient scale 15
Slide 16: 225,000 sq. ft. retrofitted greenhouse
225,000 sq. ft. retrofitted greenhouse in Monterey County, CA Facilities upgrades allow us to improve output Targeted levels of 10,000+ lbs of flowers every quarter 16
Slide 17: Manufacturing & Products
MANUFACTURING & PRODUCTS
Slide 18: Product types produced
We produce nearly all types of products with highly acclaimed: Jarred flower Pre - rolls Edibles Vape products Concentrates 19
Slide 19: Flower products
CLASSIC 3.5G PACK 3.5G JAR FLOWER 1G SMOKE 20
Slide 20: Vape and concentrate products
RECHARGEABLE VAPE 510 CART NEW INFUSED SMOKES LOWELL DART BUBBLE HASH FULL - MELT HASH AGE CURED ROSIN LIVE ROSIN 21
Slide 21: Edibles: chocolates, baked goods, gummies, mints
CHOCOLATES BAKED GOODS GUMMIES 22 MINTS
Slide 22: A Leading Brand
A LEADING BRAND
Slide 23: Lowell premium California cannabis brand
Lowell is a premium California cannabis brand with extremely rare levels of reach and audience A reputation of authenticity and heritage that has become synonymous with quality and refinement Lowell is best known for its distinctive pre - rolls and unique logo 24
Slide 24: Partnership with Ascend Wellness
● Partnership with Ascend Wellness (AWH) to launch Lowell Smokes in Massachusetts and Illinois ● Industry leading economics: 15% of wholesale royalty arrangement, demonstrates the power of the brand ● More states to come The walking billboard Coming to a store near you 25
Slide 25: Social media audience and impressions
26 ● Over 1 million in weekly impressions across all social outlets ● 3 million impressions on YouTube ● Remains strong and relevant : 2020 and Q 4 activity was extremely healthy and remains best - in - class among peers Total Audience : up 68 % y/y Engagement : up 132 % y/y Industry leading social
Slide 26: Statewide Distribution
STATEWIDE DISTRIBUTION
Slide 27: Distribution facility, fleet and performance metrics
Facility : 18,000 sq. ft. — all distribution - related inventory activity in the same building under one roof to include post - compliance la beling, retail flower packing, finished goods inventory, order pick/pack and delivery loading Fleet : 22 delivery vans allowing for regular maintenance rotati
Slide 28: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 29: 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 30: Summary income statement
Q2 Q3 Q4 Q1 Owned Products 1 $7,231 $11,910 $7,607 $9,667 Agency Revs $1,981 $1,733 $1,355 $1,230 Distribution Revs $682 $487 $190 $130 Total Net Revs 1 $9,894 $14,131 $9,151 $11,026 Gross Profit ($1263) $4,979 $218 ($1,477) Gross Margin (12.8)% 35.2% 2.4% (13.4)% Adj. EBITDA 2 ($4,300) $1,402 ($4,2
Slide 31: Capitalization table and balance sheet highlights
CAPITALIZATION TABLE 7/31/2021 BALANCE SHEET HIGHLIGHTS (e) 32
Slide 32: $LOWL.CN & $LOWLF
$LOWL.CN & $LOWLF