California Cannabis Company Lowell Farms Will Manage 2 Retail Dispensaries In LA, Deal Also Includes Acquisition Option

California cannabis company, Lowell Farms Inc. LOWLLOWLF entered into management services agreements with two cannabis retail dispensaries located in Los Angeles, California.

Under the terms of the agreements, Lowell Farms' wholly-owned subsidiary Mercati Dei Fiori, LLC, will assume operational management of the retail stores Rose Collective in Venice and Sunnyside Collective in Westwood. The deal also contains an option for Lowell Farms to acquire equity ownership through a nonbinding letter of intent.

"These agreements mark a significant milestone for Lowell Farms as we continue to navigate the difficult California cannabis landscape," stated Ann Lawrence, executive chair of the board. "This partnership is built on shared values and a unified vision for success. By combining our expertise and leveraging operational synergies, our goal is to create a vertically integrated model that will provide a strong platform for brands and enhance the retail experience for our customers."

By integrating retail operations into its brand management and distribution capabilities, the company will increase its scale and achieve greater vertical integration. It also allows the company greater control over the full supply chain, from production and distribution through the consumer experience.

With this strategic move, Lowell Farms is seeking to strengthen brand loyalty and capture a larger share of the California cannabis market.

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New Chairperson

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

LOWLF Price Action

Lowell Farms shares traded flat at $0.01 per share after the market close on Thursday.

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