Lowell Farms Inc. Announces Termination of the Zabala Road Lease

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SALINAS, Calif., Jan. 17, 2024 (GLOBE NEWSWIRE) — Lowell Farms Inc. (the “Firm”) (CSE: LOWL; OTCQX: LOWLF), a California-born hashish firm with superior manufacturing capabilities together with extraction, manufacturing, and distribution, declares that on January 12, 2024, Cypress Holding Firm, LLC (“Cypress”), a completely owned subsidiary of the Firm, surrendered possession of roughly 10 acres of actual property at 139 Zabala Highway, Salinas, California (the “Zabala Highway Property”) leased by Cypress pursuant to a Lease Settlement dated April 1, 2017 (the “Zabala Highway Lease”) with Tinhouse, LLC, dba Tinhouse Companions, LLC, as landlord (the “Landlord”). Previous to vacating the premises on January 12, 2024, the Firm had operated a cultivation facility, which incorporates 4 greenhouses totaling roughly 255,000 sq. toes, on the Zabala Highway Property.

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As beforehand introduced, in January 2023, the Firm’s Board of Administrators fashioned a strategic alternate options particular committee of unbiased administrators to discover, evaluate and consider strategic and monetary alternate options. As a part of these efforts, the Firm entered into negotiations with the Landlord to restructure the phrases of the Zabala Highway Lease, which offered for an expiry date of December 31, 2027, topic to 5 5-year extension choices exercisable by Cypress.

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In September 2023, the Firm and the Landlord reached a settlement amending the phrases of the Zabala Highway Lease and reaching settlement on all rent-related points. The Landlord terminated the Zabala Highway Lease through a letter dated October 6, 2023, which was served by its counsel on the Firm on October 10, 2023. In October 2023, the Firm filed a lawsuit for breach of contract and particular efficiency towards the Landlord to implement the settlement phrases. The Landlord filed counterclaims and an illegal detainer motion towards the Firm, claiming damages of greater than $36 million, which the Landlord claims are based mostly on an evaluation of accelerated hire due by the top of the time period of the Zabala Highway Lease, together with lawyer’s charges, enhancements, and different undefined prices.

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The Firm intends to vigorously defend itself towards the claims made by the Landlord. Nevertheless, no assurance will be offered as as to if or not the Firm will prevail, and it could be required to pay vital financial damages.

ABOUT LOWELL FARMS INC.
Lowell Farms Inc. (CSE:LOWL; OTCQX:LOWLF) (the “Firm”) is a California-based hashish firm with superior manufacturing capabilities supporting the provision chain, together with extraction, manufacturing, model gross sales, advertising, and distribution. Lowell Farms has an unique portfolio of award-winning manufacturers, together with Lowell Herb Co, Home Weed, Moon, Cypress Hashish, and Authentic Pot Co. for licensed retailers statewide.

Lowell Farms Inc. Media Contact
pr@lowellfarms.com

Lowell Farms Inc. Investor Relations Contact
Invoice Mitoulas
416.479.9547
ir@lowellfarms.com

Lowell Farms Inc. Firm Contact
Mark Ainsworth
ir@lowellfarms.com

Ahead-Trying Data and Statements

This information launch incorporates sure “forward-looking data” throughout the which means of relevant Canadian securities laws and might also include statements that will represent “forward-looking statements” throughout the which means of the protected harbor provisions of the US Personal Securities Litigation Reform Act of 1995. Such forward-looking data and forward-looking statements should not consultant of historic info or data or present situations, however as a substitute characterize solely the Firm’s beliefs relating to future occasions, plans or goals, lots of which, by their nature, are inherently unsure and out of doors of the Firm’s management. Usually, such forward-looking data or forward-looking statements will be recognized by means of forward-looking terminology corresponding to “plans”, “expects” or “doesn’t anticipate”, “is anticipated”, “funds”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “doesn’t anticipate”, or “believes”, or variations of such phrases and phrases or could include statements that sure actions, occasions or outcomes “could”, “might”, “would”, “may” or “will likely be taken”, “will proceed”, “will happen” or “will likely be achieved.” The forward-looking data and forward-looking statements contained herein could embrace, however should not restricted to, the result of the litigation with the Landlord in respect of the Zabala Highway Lease and the Zabala Highway Property. There will be no assurance that such forward-looking data and statements will show to be correct, and precise outcomes and future occasions might differ materially from these anticipated in such forward-looking data and statements. This forward-looking data and statements replicate the Firm’s present beliefs and are based mostly on data presently out there to the Firm and on assumptions the Firm believes are cheap.

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Ahead-looking data is topic to identified and unknown dangers, uncertainties and different components that will trigger the precise outcomes, stage of exercise, efficiency or achievements of the Firm to be materially completely different from these expressed or implied by such forward-looking data. Such dangers and different components could embrace, however should not restricted to: common enterprise, financial, aggressive, political and social uncertainties; common capital market situations and market costs for securities; working and growth prices; competitors; modifications in laws or laws affecting the Firm; the timing and availability of exterior financing on acceptable phrases; the out there funds of the Firm and the anticipated use of such funds; favorable manufacturing ranges and outputs; the soundness of pricing of hashish merchandise; the extent of demand for hashish product; the provision of third-party service suppliers and different inputs for the Firm’s operations; lack of certified, expert labor or lack of key people; and dangers and delays ensuing from the COVID-19 pandemic. An outline of extra assumptions used to develop such forward-looking data and an outline of extra threat components that will trigger precise outcomes to vary materially from forward-looking data will be discovered within the Firm’s disclosure paperwork, together with the Firm’s Kind 10, which is filed beneath the Firm’s profile on SEDAR+ at www.sedarplus.ca and on the SEC web site at www.sec.gov. Though the Firm has tried to determine necessary components that would trigger precise outcomes to vary materially from these contained in forward-looking data, there could also be different components that trigger outcomes to not be as anticipated, estimated or meant. Readers are cautioned that the foregoing record of things shouldn’t be exhaustive. Readers are additional cautioned to not place undue reliance on forward-looking data as there will be no assurance that the plans, intentions or expectations upon which they’re positioned will happen. Ahead-looking data contained on this information launch is expressly certified by this cautionary assertion.

The forward-looking data contained on this information launch represents the expectations of the Firm as of the date of this information launch and, accordingly, is topic to alter after such date. Nevertheless, the Firm expressly disclaims any intention or obligation to replace or revise any forward-looking data, whether or not on account of new data, future occasions or in any other case, besides as expressly required by relevant securities regulation.

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