Lowell Farms, Inc. · OTC:LOWLF
Lowell Farms — Investor Presentation (October 2021)
27 slides from Lowell Farms's investor presentation, Oct 5, 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” FIL creas ee SR = ~
Slide 4: Company overview and market snapshot
● 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: Investment highlights
5 ● Completely unique approach to sourcing virtually unlimited raw cannabis flower at the lowest - cost anywhere in America ● “Captive” distribution: unique capabilities in upstream logistics makes us a partner of choice for California retailers ● Scale and automation driving cost - leadership: we u
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: 214 Flower brands 145 Vape brands 142 Concentrate brands 39 Gummy brands 32 Beverage bran
Slide 7: Cultivation
CULTIVATION
Slide 8: Cultivation sourcing and scale
Sourcing via Lowell Farm Services and our own captive cultivation (which generates approximately 10k lbs of finished flower every quarter) Strain diversification and leadership Cost through economies of scale Quality leadership under a team of award - winning growers Develop portfolio of facilities
Slide 9: Lowell Farm Services midstream processing
● Commissioned in July of 2021, 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 surroun
Slide 10: California cultivation regions
● 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 11: Monterey County 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 11
Slide 12: Manufacturing & Products
MANUFACTURING & PRODUCTS
Slide 13: Product types
We produce nearly all types of products with highly acclaimed: Jarred flower Pre - rolls Edibles Vape products Concentrates 13
Slide 14: Flower products
CLASSIC 3.5G PACK 3.5G JAR FLOWER 1G SMOKE 14
Slide 15: Vape and concentrate products
RECHARGEABLE VAPE 510 CART NEW INFUSED SMOKES LOWELL DART BUBBLE HASH FULL - MELT HASH AGE CURED ROSIN LIVE ROSIN 15
Slide 16: Edibles: chocolates, baked goods, gummies, mints
CHOCOLATES BAKED GOODS GUMMIES 16 MINTS
Slide 17: A Leading Brand
A LEADING BRAND
Slide 18: Lowell premium California 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 18
Slide 19: Brand expansion to other states
● Illinois: Launched August 5th ● Massachusetts: Launch imminent ● More states to come ● Industry leading economics: 15% of wholesale royalty arrangement, demonstrates the power of the brand The walking billboard Coming to a store near you 19
Slide 20: Social media audience and engagement
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: up 68% y/y Engagement: up 132% y/y Industry leading social media
Slide 21: Statewide Distribution
STATEWIDE DISTRIBUTION
Slide 22: Distribution facility, fleet and KPIs
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 23: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 24: Greenhouse to shelf revenue opportunity
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 and working capital
Q3 Q4 Q1 Q2 Owned Products $11,910 $7,607 $9,667 $14,539 Agency Revs $1,733 $1,355 $1,230 $535 Distribution Revs $487 $190 $130 $83 Total Net Revs $14,131 $9,151 $11,026 $15,157 Gross Profit $4,979 $218 ($1,477) $5,744 Gross Margin 35.2% 2.4% (13.4)% 37.9% Adj. EBITDA 1 $1,402 ($4,227) ($4,569) $740
Slide 26: Capitalization table and balance sheet highlights
CAPITALIZATION TABLE 9/30/2021 BALANCE SHEET HIGHLIGHTS (e) 26
Slide 27: $LOWL.CN & $LOWLF
$LOWL.CN & $LOWLF