Lowell Farms Inc (QB) (LOWLF) News

LOWLF one for 10 reverse split:

https://otce.finra.org/otce/dailyList?viewType=Symbol%2FName%20Changes

Related transaction my @zz. More like a conflict of interest. Legal theft.

https://www.greenmarketreport.com/lowell-farms-sells-off-parts-to-satisfy-debts/

"Allen, on behalf of Geronimo Capital, which was the collateral agent of the Debentures, offered to settle the Debenture obligations by way of an asset transfer and share issuance. The committee saw no other alternatives to Geronimo’s offer. Allen controls Geronimo, making this a related party transaction."

George Allen is a POS he has literally stole the LOWLF stock of the brand Lowell smokes and Lowell35's and a Coup to fleece investors we will se what happens in time but LOWLF has some 15% revenue of those brands in cali for the next 42 months but thats it , now just another no name bulk producer ....Worthless

That is true. I saw the same thing in Canada. I bought Tweed, they bought Doja and bedrocan then were bought out by Constellation brands then it shot up. All on the idea of legal cannabis. I made money every time. Buyouts by bigger companies are not a bad thing. You have to pay attention. There are a lot of moving parts but you can get a great premium on the arbitrage. That being said. The USA spends too much time tripping over its own feet while the world is realizing what a good medicine/entertainment cannabis is. There are many many opportunities, not a lot in the states. I would not touch the MSOs any more than I would touch most LPs but there are companies that are making great gains. I am okay to get a 20% premium if it is bought out. Even more okay if it becomes the nike of weed. I think there is a real possibility that Biden’s directive to the DOJ when he first took office will take it off the schedule completely so he gets it done without wasting any political capital. It has no business on the schedule at all and they will rule that way if they are the least bit honest. Their excuse used to be it was not studied. It was not studied because it was illegal. Now other countries have studied it and insurance is paying for cannabis medicine in all formats so that excuse does not hold water. Now is the time to be in and collect. I just wish I had more cash to deploy now before the world buys a clue.

Most small players in California will be bankrupted or acquired. California bureaucracy and insane regulatory red tape paired with a virtual lack of enforcement toward rampant illicit growers has meant only very deep pocketed highly efficient operators can survive. It’s useless to expect Federal regulatory changes anytime soon (Schumer just proved that) so it’s looking more and more likely that it could be a legal challenge that forces real change but who knows when that will be.

*DOJ

I am not getting rid of the shares I have but I am not investing anything more in US cannabis until some sanity starts there. My best hope is that the SOJ becomes obliged to follow their own rules

Yes George needs to further elucidate what he means. The proprietary machinery is thus far only working in California, so they cannot feed 35’s across state lines without drawing legal action and jeopardizing the business; ironically the 35’s only work economically in California currently with the dramatically compressed unit economics.
The Licensee model has so far really only been for the legacy products, which have faced major headwinds based on the last several quarters reporting.
The 35’s definitely appear to be gaining major traction albeit his production/expansion plans are still incremental and it’s unlikely this product alone can shore up the cash burn from the rest of their operations, at least in the near term.
They need to answer the liquidity issue (again). Until they do I’m mostly on the sidelines with this one.

Adding new dipsos daily
https://twitter.com/LowellFarms

While i agree the Lic model is one way , Im thinking theres more to the"out of state" approach . I dont usually waste time and type this much . Constant Due Diligence on Lowell lately has been very necessary due to the illicit black market and draconian state taxes , George is on point and if you get on twitter and see the Lowell 35's sucess and how fast that product is getting traction !!!!! Priorities have shifted ,,,again if you watch the whole video he has suggested , (depending on capital and cashflow ) out of state expansion is the only horizon for Lowell

CEO George Allen said in the you tube video 7 weeks ago

"Our strategy is shifted to leaving California, leveraging our California brand Authority and authenticity to enter into new States which have less competitive Dynamics , we've only seen a very select view of operators capable of embracing these final two strategies and we are steadfast in our belief that Lowell is one of them and that's why we have tilted our entire operations towards those strategies

Just because there’s an article discussing challenges to a dormant clause on interstate commerce does not mean Lowell is crossing state borders with product. Let’s stick to facts. The licensee model is the only current legal and unchallenged path to out of state sales.

Lowell has shifted to going national
U.S. Constitution's dormant commerce clause is a doctrine of constitutional law interpreting the interstate commerce clause of the U.S. Constitution. It aims to prevent states from enacting protectionist measures and therefore prohibits them from adopting policies that obstruct the free flow of goods, people, or capital within the country.
https://www.forbes.com/sites/dariosabaghi/2022/12/23/how-us-constitutions-dormant-commerce-clause-is-challenging-marijuana-legislations

CEO George Allen
Our strategy is shifted to leaving California leveraging your California brand Authority and authentic
6:54
authenticity to enter into new States which have less competitive Dynamics now

6:59
we've only seen a very select view of operators capable of embracing these final two strategies and we are

7:06
steadfast in our belief that Lowell is one of them and that's why we have tilted our entire operations towards

7:13
those strategies

https://mjbizdaily.com/could-oregon-lawsuit-legalize-interstate-marijuana-commerce-before-congress/

That is why I am here. Differentiated not hemmed in by state boundaries and a brand people relate to. They have been focused and laying the groundwork for success. This is getting exciting now :)

“We are planning for a world where cannabis sales will occur across platforms on a federally deregulated basis. In that environment, differentiation within branding is critical.” –Chairman George Allen
https://twitter.com/LowellFarmsInc/status/1593664154451300353

Yes lots of court challenges out there due to the ridiculous out-dated policy but frankly litigation attempting to alter Federal cannabis policy is probably going to move at a similar snails pace as the current FDA/HHS review of Federal scheduling policy per Bidens recent request. Near term what Lowell needs is cash or to be bought out.

Life saver for Lowell , this is a 1st to my knowledge many more to come then interstate commerce
https://www.marijuanamoment.net/oregon-marijuana-company-files-federal-lawsuit-against-state-over-unconstitutional-cannabis-export-ban/

https://twitter.com/G4Geronimo/status/1586910303140212736

Yes I too have followed for some time. I bought when it was still Indus right before George re-capped the company several years ago. I was lucky enough to get in near the lows and sell between $1 to $2 and have now recently reloaded. Lowell is one of my very few successful investments in this sector and whether I’ve held shares or not, I’ve followed developments closely because George is a standout leader in the space. So despite the share structure going from 38M to now 400M f/d I’m back in with a full position.

I agree mostly with your criticism of the MSO strategy but I’d say in general access to capital is the key and they’ve got it. If they wanted they could mop up some of the bigger players in Cali for 1/10 the valuation from a few years ago so from that standpoint they’ve played Cali very cleverly thus far. Look no further than Cresco’s disastrous acquisition of Origin House and subsequent write off for an example of what happens when an MSO chases the Cali market.

In terms of Lowell, if you break down their 3 core segments sales and margin trajectory in the TTM it’s easy to conclude that the 35’s are absolutely crucial to the success of this business. Everything rests on whether they can do huge volume with this product.

https://www.forbes.com/sites/willyakowicz/2022/11/03/how-the-cannabis-industry-can-begin-interstate-commerce--legally
I cant get past the paywall but if anyone can copy and repost please . Interstate is what Lowell needs

I have been here for a while and I think these guys have a real shot. Giving people what they want is always a good idea. California is as big by itself as the whole country of Canada but just like the USA as a whole, California is a patchwork. The well funded msos have avoided the state because they do not want competition from the legacy market they have opted for an LP style land grab instead. I think that will be shown to be a bad move. There is plenty of grow room in California and I like that they are licensing to gain exposure across the country and keeping their quality premium and affordable. This is one of the few US companies I like and have held shares of through the downturn while averaging down. They say they will do something then they do it. A refreshing change in this industry.

My notes and takeaways from the recent presentation:

Lowell owned 5% of CA preroll market with legacy products.
Launched 35’s on 9/29 in 16 stores - in 4 weeks went from 5% baseline to 13% for prerolls (up to 19% in some stores).
Minimal cannibilization on legacy side, early repeat buying data is solid.
Launch pace limited by product availability but by end of Oct expect to be in 100 stores.
Capacity expansion will continue to ramp through mid 2023.
Also planning to expand 35’s via licensing outside CA with boots on ground in 23 (is New York wishful thinking?).

Extraordinary value proposition for target consumer:
35’s pricing - below 88% of all flower in CA and priced Below 98% of all prerolls in CA.
Going after the heavy cannabis user highly price/quality sensitive.
Growth vector going forward: Increase output capacity and drive efficiency.
Win on quality, convenience and price.

Two questions jump out:
1) does product have staying power in a crowded and competitive market once “novelty” of 35s wears off?
2) if answer to #1 is yes then how do well capitalized competitors respond to losing significant share?

Exciting times to be a Lowell shareholder!

https://www.virtualinvestorconferences.com/events/event-details/kcsa-cannabis-virtual-investor-conference-2?utm_source=agenda&utm_medium=press+release&utm_campaign=1022cannabisVIC&utm_id=1022cannabisVIC

https://www.newcannabisventures.com/lowell-farms-lights-up-a-pre-roll-to-boost-its-brand/

https://twitter.com/todd_harrison/status/1578353675516317696?s=61&t=UIpDd7QJI2DyVH_VLhq3ng

https://robbreport.com/lifestyle/news/lowell-35s-pre-roll-1234754502/

I continue to nibble. Admittedly it’s a gamble. With all segments floundering the 35’s success is crucial to the company’s future. These things need to fly off the shelves and become the gotta have it item George is aiming for.

09/26 Monday adiscussion on interstate commerce , a boon for Lowell if it happens
https://twitter.com/HedgeyeCannabis/status/1572661342284435456

https://twitter.com/LowellFarms/status/1572668058682167296

Lowell 35's rollout in Cali
https://twitter.com/LowellFarms/status/1571931817170866176

Cannabis Talk 101 and Advanced Nutrients visit Lowell Farms

Pedalfast is a caanabis marketing team , a little perspective on Lowell 35's

That was a good interview with George. With the cash raise question out of the way I’ve been cautiously getting long again. The overall market backdrop is terrible, so I am adding carefully. Q3 will show little of the 35’s revs and it’s clear from this interview that cpg margin compression is ongoing but no doubt the Q3 call will be a lot about the 35’s early showing and market penetration potential beyond early rollout.

The Lowell story and George as visionary pitch man are a compelling story of a possible brand titan in the making. This industry has historically been where capital goes to evaporate, rewarding smart momentum traders and trapping/frustrating buy and hold investors. I liked George’s response to the possibility of Lowell just being bought out and merely a bolt on asset for an MSO. That’s the fiery tenacity of a leader who knows they have a team and brand that’s too special to become a cog in a wheel. Definitely rooting for these guys!

On a technical note, the weekly chart is showing the same divergences as back in early 2020, which is a good sign. The caveat being a whole lot of cannabis stocks have been flashing these same divergences for months and yet the bleeding continues.

Lots of additonal exposure for lowell 35's coming
https://twitter.com/aaronvalue/status/1570099247135199232

Ceo George Allen on Lowell35's
https://open.spotify.com/episode/58f1SAlOpI9EioyfDAd8Yv

I should have mentioned I have a small position in Columbia Care. I bought before the announce merger with Cresco, but kind of don't pay attention to those shares, knowing they are going to Cresco soon. I do recall conversing with you about infused beverages, I do think there is a market for those products. I think that the Feds will protect the market and find a way for the FDA to insure USA farmers get a big slice of the pie. I think the industry is too young to give away to foreign interests, don't forget the politicians will want to get a piece of the action also. We are not so opposite as I got into Schwazze because of their potential, they have great management and experience, while the big MSO had gotten too rich for my blood. I took a second look at Lowell with your advice and some research, I think they can be an industry force, they need some help from State & Fed regulators in policing illegal grows.

I am the opposite of you :) I have Columbia care because it is inexpensive and will be part of the biggest MSO when it merges with Cresco. I AM in Cali companies lol but I want brands not grows. The grow will probably end up off shore or as a crop like corn. I like Lowell even more now they have their rolling machine. And Tinley because they have bottling and that is the way people will use cannabis. Cali sober is a thing! Folks don't drink alcohol but will drink infused beverages instead. I have yet to find an indoor grower that makes great weed and is public. It may never be the case but for now I want brands. Inside and outside the USA. Canada is starting to maybe be decent. Still will not touch the big names but there are jewels hiding in the dirt. I can wait, this is going to be epic!

I am the opposite of you :) I have Columbia care because it is inexpensive and will be part of the biggest MSO when it merges with Cresco. I AM in Cali companies lol but I want brands not grows. The grow will probably end up off shore or as a crop like corn. I like Lowell even more now they have their rolling machine. And Tinley because they have bottling and that is the way people will use cannabis. Cali sober is a thing! Folks don't drink alcohol but will drink infused beverages instead. I have yet to find an indoor grower that makes great weed and is public. It may never be the case but for now I want brands. Inside and outside the USA. Canada is starting to maybe be decent. Still will not touch the big names but there are jewels hiding in the dirt. I can wait, this is going to be epic!

I like your analogy, using Coca-Cola. Lot's of pain coming to many MSO's when decriminalization and interstate commerce cause major disruption and reorganization. I only own stocks to 4 cannabis companies, two top tier #1 MSO's and then SHWZ and Lowell Farms. I try to avoid any Cali pot companies due to the high rate if illegal grows competing with the legal market. State and Federal authorities need to get more law enforcement on this problem. However Law & Order has its own issues with overall crime.

I continue to build up my positions with SHWZ and LOWLF. I think Cali is finally getting serious with shutting down illegal grows. Lowell Farms is at a great entry price these days. I think Lowell is making inroads with distributor's, as I agree that branding will be the key to success for any SSO or MSO.

Best regards.

They will have the exact problems the big Canadian lps have. They bought far too much grow space and did not have a clue how to grow at scale. Cannabis is a commodity. It will be in the brands that the money is made that is why I am here for now. If the US continues to trip over its own feet I will get out of all US cannabis and invest in countries that are actually interested in giving their population medicine that heals them and keeps them out of hospitals. I do not hold any of the msos because they will have to get rid of a lot of operations they got just because of the interstate restrictions. Imagine if coca cola had to grow its own sugar cane and process it start to finish in each state? That is exactly what the bogus rules in the US make companies do! Its nuts! And people think that is fine….

The scale of whats about to happen is enormous
https://twitter.com/G4Geronimo/status/1565085882528346112

Yes that’s why they want interstate commerce delayed and will only pay lip service to desired legalization while not backing it up with big lobbying dollars. Prior to real reform that collapses their “protected moat” system, the MSOs will have acquired their low cost supply assets or obtained access wherever the highest quality cheapest product is grown. California is obviously near the top of that list. From this standpoint, Lowell with its LFS platform (along with the greenhouse which still appears to be economic), should really make them an ideal bolt on asset.

decriminalization of cannabis will bring new problems to those large MSO's with duplicative services in every single state of operation. Those fiefdoms will need to write off a lot of grow and distribution facilities once interstate commerce of cannabis commences.

Lowell 35's: Pre-Rolls Perfected. Rolled never Filled
https://twitter.com/LowellFarms/status/1564320729792905217

And let’s not forget the MSOs that have their limited license moats built up around state lines have a vested interest in postponing decriminalization and interstate commerce for as long as possible. Once they’ve leveraged their positions accordingly and bought the discounted or bankrupted companies that have been annihilated by this fractured draconian system with over 2/3 states legalized vs Federal illegality, then the MSO’s will throw their weight and capital behind real federal legislative reform. Until then the big fish want to get bigger while the little fish starve for capital and are forced to sell out for pennies on the dollar. These guys could care less which side of the aisle takes the blame for all this.

Hopefully Lowell 35’s are a big winner heading into end of year and allow the company to turn the corner.

I would love to see decriminalization, however I do not expect a politician to rush that decision. Our public servants know how to milk a cash cow, slow and steady until they get every last donation. I would just be happy to see the Safe Act passed.

De criminalizing by taking it off schedule 1 stops all of the nonsense. Instantly gets rid of black market, dealing in cash, and transport over state lines. The only reason it is not sold by the bushel like every other commodity is the US govt’s choice to incarcerate people over a benign plant while thieves walk free.. free the gardeners, put the gop that enabled or turned a blind eye to trump’s abuse of power in jail & everybody is happy!

California Bills To Authorize Interstate Marijuana Commerce And Seal Records Head To Governor
="[IC] contingent on official assurance that the activity would not put the state at risk of federal enforcement action."

https://www.marijuanamoment.net/california-bills-to-authorize-interstate-marijuana-commerce-and-seal-records-head-to-governor-with-more-reforms-pending/

During the last earnings call George Allen said it cost them 5 bucks to make this pack they will wholesale for $10-$11 and Retail for $20. If you invest in Lowell ,, this PDF gives an amazing amount of insight into market study for lowell35's
https://ir.lowellfarms.com/sec-filings/content/0001171843-22-004178/0001171843-22-004178.pdf