Lowell Farms Inc., a prominent player in the California cannabis market, has taken a significant step towards expanding its reach. The company has signed management services agreements with two cannabis retail dispensaries located in Los Angeles, California: Rose Collective in Venice and Sunnyside Collective in Westwood. This strategic move involves Lowell Farms’ wholly-owned subsidiary, Mercati Dei Fiori, LLC, taking over the operational management of these stores.
This deal also includes an option for Lowell Farms to acquire equity ownership in the dispensaries through a nonbinding letter of intent, highlighting the company’s long-term commitment to these partnerships. Ann Lawrence, executive chair of the board, emphasized the importance of this move, stating, “These agreements mark a significant milestone for Lowell Farms as we continue to navigate the difficult California cannabis landscape.” She further emphasized the shared values and vision for success that underpin this partnership, aiming to create a vertically integrated model for enhanced customer experience and brand growth.
By integrating retail operations into its existing brand management and distribution capabilities, Lowell Farms is strategically positioning itself for greater scale and vertical integration. This move allows the company greater control over the entire supply chain, from production and distribution to the final consumer experience. The ultimate goal? To strengthen brand loyalty and secure a larger share of the lucrative California cannabis market.
Concurrently with these management agreements, Lowell Farms has appointed Ann Lawrence as its new executive chairperson. A seasoned professional with extensive experience in distressed retail mergers and acquisitions, Lawrence brings valuable expertise to the company’s retail expansion efforts. As the new leader of Lowell Farms’ retail strategy, she will play a pivotal role in driving the company’s growth in the cannabis market.
Following the announcement, Lowell Farms shares traded flat at $0.01 per share after the market close on Thursday. This move comes as the cannabis industry continues to evolve, with companies like Lowell Farms strategically adapting to navigate the competitive landscape and seize opportunities for growth.
