EXHIBIT 99.1

Lowell Farms Inc. Announces Record Revenues and Record Cultivation Output for the Second Quarter

Lowell Reports 37% sequential growth in revenue driven by large cultivation yields advances and strong growth in demand for the Lowell branded products

SALINAS, Calif., Aug. 16, 2021 (GLOBE NEWSWIRE) -- Lowell Farms Inc. (the “Company”) (CSE: LOWL; OTCQX: LOWLF), a California-born innovator in cannabis cultivation and maker of the legendary brand Lowell Smokes, announced revenue and operating results for the second quarter (ended June 30, 2021). All figures stated are in US Dollars and are on a US GAAP basis.

Second Quarter Financial Highlights:

Our Flower production at the greenhouse ramped steadily during the quarter and we exceeded our guidance of 8,500 to 9,000 lbs during the quarter by a healthy margin at 9,553 lbs, a 102% increase over the preceding quarter. Additionally, our plan to restore the Lowell brand to health was met with success during the quarter.

“We have a lot to be proud of, but I am particularly excited about the continued progress we are making at the cultivation level,” says Lowell Farms Inc. Chief Executive Officer Mark Ainsworth. “We have spent a good portion of Q2 dialing in our automated environmental systems to continue to reach increased yields and potencies and right now we are collecting important data to provide the optimal conditions for each particular genetics. This is an exciting phase and we look forward to reporting back to you on our learnings and improvements as well as the positive impacts on our annual harvest run rate.”

Operational Highlights and Ongoing Initiatives in 2021:
The Company’s focus and strategic planning of key initiatives continue to drive sustainable profitable growth, with top priorities on its cultivation facilities, improving operational efficiency, and refinement of biological assets.

Subsequent events to the fiscal second quarter June 30, 2021:

“We have a lot to look forward to, and despite the headwinds we anticipate encountering from decline in bulk sales and the compression in the market,” said George Allen, Chairman of the Board for Lowell Farms. “Our strategy is to offset revenues with our increased cultivation output and the launch of our new LFS business unit which is ramping quickly to incredibly high demand.

“We are also seeing extremely positive results from our expansion to Illinois and we are on track to launch Massachusetts later this quarter. We fully expect to add more markets in the near future. In California, we are positioning Lowell to be successful in an incredibly competitive operating environment and I am incredibly encouraged by the numbers coming out of our cultivation.”

Q2 Financial Results Earnings Conference Call Details:
The conference call with management at 5:30 p.m. ET on Monday, August 16, can be accessed using the following dial-in information:

U.S. and Canadian Toll Free:1-877-407-0789
International:1-201-689-8562
Conference ID:13721106
Webcast:http://public.viavid.com/index.php?id=145513

Please dial-in at least 10 minutes before the call to register.

The conference call will be webcast live and archived on the investor relations section of the Lowell Farms website at https://ir.lowellfarms.com/.

ABOUT LOWELL FARMS INC.
Lowell Farms Inc. (CSE:LOWL; OTCQX:LOWLF)(the “Company”) is a California-based vertically-integrated cannabis company with advanced production capabilities supporting every step of the supply chain, including cultivation, extraction, manufacturing, brand sales, marketing, and distribution. Lowell Farms grows artisan craft cannabis with a deep love and respect for the plant, and prides itself on using sustainable materials – from seed to sale – to produce an extensive portfolio of award-winning originals, including Lowell Herb Co, Cypress Cannabis, MOON, and Kaizen Extracts, for licensed retailers statewide.

Lowell Farms Inc. Media Contact

Renata Follmann
pr@lowellfarms.com

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

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

Forward-Looking Information and Statements
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved.” The forward-looking information and forward-looking statements contained herein may include, but are not limited to, the ability of the Company to successfully achieve its business objectives, including as a result of the described acquisition, and expectations for other economic, business, and/or competitive factors. There can be no assurance that such forward-looking information and statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information and statements. This forward-looking information and statements reflect the Company’s current beliefs and are based on information currently available to the Company and on assumptions the Company believes are reasonable.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; operating and development costs; competition; changes in legislation or regulations affecting the Company; the timing and availability of external financing on acceptable terms; the available funds of the Company and the anticipated use of such funds; favorable production levels and outputs; the stability of pricing of cannabis products; the level of demand for cannabis product; the availability of third-party service providers and other inputs for the Company’s operations; lack of qualified, skilled labor or loss of key individuals; and risks and delays resulting from the COVID-19 pandemic. A description of additional assumptions used to develop such forward-looking information and a description of additional 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 annual information form filed on the SEDAR website at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement.

The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. However, the Company expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.

Neither the Canadian Securities Exchange nor its Regulation Service Provider has reviewed, or accepts responsibility for the adequacy or accuracy of, the content of this news release.


LOWELL FARMS INC. AND AFFILIATES     
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION     
(Unaudited)     
    June 30,December 31,
     2021  2020 
ASSETS     
Current assets:     
Cash and cash equivalents   $9,113 $25,751 
Accounts Receivable - net of allowance for doubtful accounts of $1,024 and $1,389 at June 30, 2021 and December 2020, respectively    6,223  4,529 
Inventory    14,736  9,933 
Prepaid expenses and other current assets    4,144  6,391 
Total current assets    34,216  46,604 
Property and equipment, net    64,496  49,243 
Goodwill    357  357 
Other intangibles, net    40,919  736 
Other assets    601  476 
      
Total assets   $ 140,589 $ 97,416 
      
LIABILITIES AND STOCKHOLDERS’ EQUITY     
Current liabilities:     
Accounts payable   $3,313 $2,137 
Accrued payroll and benefits    1,142  1,212 
Notes payable, current portion    369  1,213 
Lease obligation, current portion    2,410  2,301 
Other current liabilities    5,012  8,860 
Total current liabilities    12,246  15,723 
Notes payable    258  303 
Lease obligation    35,260  36,533 
Convertible debentures    13,646  13,701 
Mortgage obligation    8,938  - 
Total liabilities    70,348  66,260 
      
STOCKHOLDERS' EQUITY     
Share capital    170,613  125,540 
Accumulated deficit    (100,372) (94,384)
Total stockholders' equity    70,241  31,156 
Total liabilities and stockholders' equity   $ 140,589 $ 97,416 



LOWELL FARMS INC. AND AFFILIATES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)    
     
  Six Months Ended June 30,
   2021   2020 
CASH FLOW FROM OPERATING ACTIVITIES    
Net loss $5,988  $(16,631)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization  1,858   1,762 
Amortization of debt issuance costs  420   - 
Share-based compensation expense  625   1,825 
Provision for doubtful accounts  173   720 
Termination of branding rights agreement  152   - 
Unrealized gain on change in fair value of investments  (125)  (395)
Changes in operating assets and liabilities:    
Accounts receivable  (1,526)  1,390 
Inventory  (1,501)  1,980 
Prepaid expenses and other current assets  (553)  (333)
Other assets  -   - 
Accounts payable and accrued expenses  (4,320)  2,307 
Other current and long-term liabilities  -   (98)
Net cash used in operating activities $ (10,785) $ (7,473)
CASH FLOW FROM INVESTING ACTIVITIES    
Proceeds from asset sales $1,979  $- 
Purchases of property and equipment  (608)  (4,110)
Disposition of business interest, net of cash received  -   2,743 
Acquisition of business assets, net  (6,642)  - 
Investment in corporate interests  -   - 
Net cash used in investing activities $ (5,271) $ (1,367)
CASH FLOW FROM FINANCING ACTIVITIES    
Principal payments on lease obligations $(1,164) $(1,053)
Payments on notes payable  (128)  (31)
Proceeds from convertible notes, net of financing costs  -   13,663 
ssuance of warrants associated with convertible notes offering  -   1,556 
Proceeds from brokered private placement  -   62 
Proceeds from lease financing  -   - 
Proceeds from notes payable  -   - 
Proceeds from exercise of warrants and options  710   - 
Issuance of subordinate voting shares for acquisition  -   - 
Payment of debt issuance costs  -   - 
Net cash (used) provided by financing activities $ (582) $ 14,197 
     
Change in cash and cash equivalents and restricted cash $(16,638) $5,357 
Cash and cash equivalents—beginning of year  25,751   1,344 
Cash, cash equivalents and restricted cash—end of period $ 9,113  $ 6,701 
     
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Cash paid during the period for interest $605  $1,403 
Cash paid during the period for income taxes $187  $- 
     
OTHER NONCASH INVESTING AND FINANCING ACTIVITIES    
Property and equipment acquired via capital lease $-  $578 
Disposition of business interests $-  $2,743 
Issuance of warrants $-  $1,556 
Shares issued for services in connection with convertible debenture offering $-  $62 
Issuance of subordinate voting shares in exchange for net assets acquired $43,259  $- 
Liabilities assumed and receivable forgiveness in exchange for net assets acquired $2,910  $- 
Debt and associated accrued interest converted to subordinate voting shares $478  $- 



LOWELL FARMS INC. AND AFFILIATES
CONSOLIDATED STATEMENTS OF OPERATIONS  
(Unaudited)         
          
   Three Months Ended  Six Months Ended
   June 30, June 30, June 30, June 30,
    2021   2020   2021   2020 
Net revenue  $15,157  $9,894  $26,183  $19,336 
Cost of goods sold   9,413   11,157   21,915   22,328 
          
Gross profit (loss)   5,744   (1,263)  4,268   (2,992)
          
Operating expenses         
General and administrative   3,817   1,456   6,285   4,733 
Sales and marketing   2,233   1,184   3,667   2,410 
Depreciation and amortization   167   885   491   1,762 
Total operating expenses   6,217   3,525   10,443   8,905 
          
Loss from operations   (473)  (4,788)  (6,175)  (11,897)
          
Other income/(expense)         
Other income (expense)   1,858   -   1,416   25 
Loss on termination of investment   -   (3,524)  -   (3,524)
Unrealized gain on change in fair value of investment   18   306   124   391 
Interest expense   (598)  (726)  (1,215)  (1,576)
Total other income (expense)   1,278   (3,944)  325   (4,684)
          
Income (loss) before provision for income taxes   805   (8,732)  (5,850)  (16,581)
Provision for income taxes   74   25   138   50 
Net income (loss)  $ 731  $ (8,757) $ (5,988) $ (16,631)
          
Net income (loss) per share:         
Basic  $0.01  $(0.26) $(0.10) $(0.50)
Diluted  $0.00  $(0.26) $(0.10) $(0.50)
Weighted average shares outstanding:         
Basic   71,021   33,307   61,956   33,025 
Diluted   201,278   33,307   61,956   33,025 



LOWELL FARMS, INC. AND AFFILIATES
ADJUSTED EBITDA
(Unaudited)    
  Three Months
  June 30, June 30,
(in thousands)  2021   2020 
Net income (loss) $ 731  $ (8,757)
Interest expense  598   726 
Provision for income taxes  75   25 
Depreciation in cost of goods sold  584   514 
Depreciation and amortization in operating expenses  167   371 
Depreciation in other income (expense)  195   - 
EBITDA(1)  2,350   (7,121)
Investment and currency (gains)/ losses  (19)  (306)
Share-based compensation  336   213 
Net effect of cost of goods on mark-up of acquired finished goods inventory  497   - 
Transaction and other special charges  (2,424)  - 
Adjusted EBITDA(1) $ 740  $ (7,214)
(1) Non-GAAP measure - see Non-GAAP Financial Measures in this MD&A.