Exhibit 99.1

 

 

1 INTRODUCING: LOWELL FARMS SERVICES (CSE: LOWL; QTCQX: LOWLF)

 

 

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 does not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar data presented by other issuers . It should not be considered in isolation as a substitute for measures of performance prepared in accordance with GAAP and is not necessarily indicative of operating costs presented under GAAP . EBITDA is net income (loss), excluding the effects of income taxes (recovery), net interest expense, depreciation and amortization ; and Adjusted EBITDA also includes non - cash fair value adjustments on investments, unrealized foreign currency gains/losses, share - based compensation expense and other transactional and special expenses, such as acquisition costs and expenses related to the markup of acquired finished goods inventory, which are inconsistent in amount and frequency and are not what we consider as typical of our continuing operations . Management believes this measure provides useful information as it is a commonly used measure in the capital markets and as it is a close proxy for repeatable cash generated by operations . We use Adjusted EBITDA internally to understand, manage, make operating decisions related to cash flow generated from operations and evaluate our business . In addition, we use Adjusted EBITDA to help plan and forecast future periods . ON FORWARD - LOOKING STATEMENTS This document includes information, statements, beliefs and opinions which are forward - looking, and which reflect current estimates, expectations and projections about future events, referred to herein as “forward - looking statements” or “forward - looking information” . Statements containing the words “believe”, “expect”, “intend”, “should”, “seek”, “anticipate”, “will”, “positioned”, “project”, “risk”, “plan”, “may”, “estimate” or, in each case, their negative and words of similar meaning are intended to identify forward - looking statements . By their nature, forward - looking statements involve a number of known and unknown risks, uncertainties and assumptions concerning, among other things, the Company’s anticipated business strategies, anticipated trends in the Company’s business and anticipated market share, that could cause actual results or events to differ materially from those expressed or implied by the forward - looking statements . These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein . In addition, even if the outcome and financial effects of the plans and events described herein are consistent with the forward - looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods . Although Lowell Farms has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward - looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended . A description of assumptions used to develop such forward - looking information and a description of risk factors that may cause actual results to differ materially from forward - looking information can be found in the Company’s disclosure documents, such as the Company’s listing statement and management’s discussion and analysis, filed on the SEDAR website at www . sedar . com . Forward - looking information contained in this presentation is based on the Company’s current estimates, expectations and projections, which the Company believes are reasonable as of the current date . and the Company’s registration statements on Forms 10 - 12 g and S - 1 , filed on the EDGAR website at www . sec . gov . The Company can give no assurance that these estimates, expectations and projections will prove to have been correct . You should not place undue reliance on forward - looking statements, which are based on the information available as of the date of this document . Forward - looking statements contained in this document are made of the date of this presentation and, except as required by applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances . Historical statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future . In this regard, certain financial information contained herein has been extracted from, or based upon, information available in the public domain and/or provided by the Company . In particular, historical results should not be taken as a representation that such trends will be replicated in the future . No statement in this document is intended to be nor may be construed as a forecast . ON FUTURE - ORIENTED FINANCIAL INFORMATION To the extent any forward - looking information in this Presentation constitutes “financial information” or “financial outlooks” within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the anticipated market penetration of the Company’s products and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such future - oriented financial information and financial outlooks . Future - oriented financial information and financial outlooks, as with forward - looking information generally, are, without limitation, based on the assumptions and subject to the risks set out above under the heading “On Forward - Looking Statements” . Indus’ actual financial position and results of operations may differ materially from management’s current expectations and, as a result, Indus’ revenue and expenses may differ materially from the revenue and expenses profiles provided in this Presentation . Such information is presented for illustrative purposes only and may not be an indication of Indus’ actual financial position or results of operations . 2

 

 

● 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 cultivation facilities ○ Brand differentiation ○ Preparing for federal legalization 6/28/2021 ($USD) Stock Price $1.2785 Market Cap 1 $289,070,190 Net Working Capital 2 $22,366,177 Enterprise Value 3 $266,704,013 1 Based on Fully Diluted Shares of 226.1m as of 6/28/2021, using treasury method on in - the - money options and warrants. Convertible Debentures are treated as equity given in - the - money status. 2 As of 3/31/2021. 3 Defined here as Market Cap minus net working capital. + = 3

 

 

4 Cultivation at massive scale growing high quality flower ● 225,000 square foot greenhouse in operation ● In planning phase for additional greenhouse ● Further expansion plans in development Diversified manufacturing capabilities and infrastructure spanning across all product categories Lowell, a rich brand with unparalleled reach, awareness and accessibility, anchoring a portfolio of diversified products Distribution, a hub&spoke delivery infrastructure that services 85%+ of the dispensaries in the state

 

 

● Lowell is acquiring a unique 10 acre newly - licensed processing facility in Salinas design - built for downstream processing in the cannabis sector ● Transaction is valued at $19.2M, comprised of $9M in cash and $10.2M in stock consideration ● Cash consideration financed with a mortgage from Viridescent ● Property will house our newest business unit: Lowell Farms Services 5 Watch Video: https://vimeo.com/568620561

 

 

● 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 surrounding areas ● Processing is a massive pain - point in California cannabis with complicated building - codes and facility requirements that are expensive to accommodate and difficult to staff ● Centralized services allows large - scale automation to give growers the best results for their harvests ● LFS is a unique service without any peers in Northern California “We are commissioning LFS to answer a pressing need in the market for which we see no other solution in sight. We seek to service the massive and fast - growing cannabis cultivation industry in California, not to compete with it ” said Chairman George Allen, “large - scale processing and automation are the missing pieces that will make California cannabis dominant in this exciting new frontier of agriculture.” 6

 

 

● 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 cannabis ● Adjacent San Benito County: Previously closed to cannabis cultivation, opening with multiple operations pending approval ● Santa Cruz County: Dozens of outdoor operations and greenhouses Monterey is the third highest county in California for agricultural output and adjacent to the other four counties that make up the top - five 7

 

 

The transaction allows us to use the diversity, skill and creativity of thousands of California growers to make Lowell more affordable with a broader consumer assortment Operations Impact from Acquisition of LFS ● Compliments our cultivation with access to a massive and diverse raw material flow at compelling cost levels without all the capex and commodity risk ● Investments in logistics and automation to drive affordability... ● A brand that has selection of choice that no other brand can match ● Prepared for a nationwide marketplace with scale that can truly support a nationwide brand 8 Cultivation Processing CPG Brands Distribution

 

 

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