EXHIBIT 99.1

Lowell Farms Inc. Announces Unaudited First Quarter 2023 Financial and Operational Results

SALINAS, Calif., May 11, 2023 (GLOBE NEWSWIRE) -- Lowell Farms Inc. (“Lowell Farms” or the “Company”) (CSE: LOWL; OTCQX: LOWLF), a California-born vertically integrated cannabis company with advanced production capabilities including cultivation, extraction, manufacturing, and distribution, announces unaudited revenue and operating results for the first quarter of 2023 (ended March 31, 2023). All figures stated are in US Dollars.

First Quarter Financial Highlights

Revenues:       

Gross Profits:

Operating Loss:·       

Adjusted EBITDA:

Revenue Summary ($’s in ‘000)
       
      Q1’23 vs Q4’22
  Q1’22Q4’22Q1’23 Growth
 CPG Revenues$9,077$5,682$4,659 -18%
 Bulk Product$1,758$2,768$2,530 -9%
 LFS$851$549$115 -79%
 Out-of-State Licensing$723$289$222 -23%
 Total$12,409$9,288$7,526 -19%


Subsequent events to the first quarter ended March 31, 2023:

“Tessa is an experienced financial executive who has a knowledgeable background in the Cannabis sector and can successfully lead our financial function through this interim period,” said Mark Ainsworth, Chief Executive Officer. “We also thank Brian for his service and wish him well in his future endeavors.”

“Despite a challenging first quarter, we are seeing improvements that we believe indicate the cost-cutting measures and operational efficiencies that we’ve employed are paying off. While we did experience a decrease in revenue, we are encouraged by the positive trend in our operating loss. As we continue to navigate a challenging economic environment, we remain focused on improving our financial performance and expanding our product offerings to achieve sustainable growth.”

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

Q1 Financial Results Earnings Conference Call Details:
The conference call with management at 5:30 p.m. ET on Thursday, May 11, can be accessed using the following dial-in information: 

U.S. and Canadian Toll Free:1-888-349-0084
International: 1-412-317-0455
Webcast: Link here 

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) (“Lowell Farms”) is a California-based 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, House Weed, MOON, and Kaizen, for licensed retailers statewide.

Lowell Farms Inc. Media Contact
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 conditions, 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 anticipated growth of Lowell Farm Services and the ability of the Company to successfully achieve its business objectives 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 products; 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 other disclosure documents, which are filed on SEDAR under the Company’s issuer profile at www.sedar.com and include the Company’s annual report on Form 10-K for the year ended December 31, 2022 filed on the SEC website at www.sec.gov. 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.

Use of Non-GAAP Financial Information

EBITDA is net income (loss), excluding the effects of income taxes (recovery); net interest expense; depreciation and amortization; and adjusted EBITDA also includes unrealized foreign currency gains/losses; share-based compensation expense; and other transactional and special expenses, such as out-of-period insurance and tax recoveries and 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.

This measure is not necessarily comparable to similarly titled measures used by other companies.

  
LOWELL FARMS INC.
CONSOLIDATED BALANCE SHEETS
 
  
  March 31,  December 31, 
  2023  2022 
ASSETS      
Current assets:     
Cash and cash equivalents $1,294  $1,098 
Accounts Receivable - net of allowance for doubtful accounts of $953 and $1,053 at March 31, 2023 and December 31, 2022, respectively.  2,838   4,163 
Inventory  10,084   10,779 
Prepaid expenses and other current assets  1,207   1,522 
Total current assets15,423   17,562 
Property and equipment, net30,792   31,284 
Right of use assets, net25,367   27,362 
Other intangibles, net42,101   42,202 
Other assets 412   413 
         
Total assets$114,095  $118,823 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:       
Accounts payable$3,442  $2,307 
Accrued payroll and benefits432   350 
Notes payable, current portion  273   282 
Lease obligation, current portion  2,464   2,659 
Convertible debentures21,626   21,398 
Other current liabilities3,550   3,654 
Total current liabilities31,787   30,650 
Notes payable 2   3 
Lease obligation 29,505   31,340 
Convertible debentures-   - 
Mortgage obligation8,664   8,713 
Total liabilities 69,958   70,706 
COMMITMENTS AND CONTINGENCIES   
STOCKHOLDERS’ EQUITY     
Share capital 191,802   191,742 
Accumulated deficit(147,665)  (143,625)
Total stockholders’ equity44,137   48,117 
         
Total liabilities and stockholders’ equity $114,095  $118,823 
         

 

LOWELL FARMS INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
 
  
  Three Months Ended 
  March 31,  March 31, 
  2023  2022 
Net revenue$7,526  $12,409 
Cost of goods sold 7,394   10,835 
         
Gross profit 132   1,574 
         
Operating expenses       
General and administrative1,624   2,164 
Sales and marketing735   1,761 
Depreciation and amortization  106   108 
Total operating expenses2,465   4,033 
         
Loss from operations(2,333)  (2,459)
         
Other income/(expense)      
Other income (expense)1   (143)
Unrealized change in fair value of investment  -   (70)
Interest expense (1,659)  (1,310)
Total other income (expense)(1,658)  (1,523)
         
Loss before provision for income taxes  (3,991)  (3,982)
Provision for income taxes49   75 
Net loss $(4,040 ) $(4,057 )
         
Net loss per share:       
Basic $(0.03) $(0.04)
Diluted $(0.03) $(0.04)
Weighted average shares outstanding:     
Basic  121,770   100,118 
Diluted  121,770   100,118 
         


LOWELL FARMS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
  
  Three Months Ended 
  March 31,  March 31, 
  2023  2022 
CASH FLOW FROM OPERATING ACTIVITIES      
Net loss $(4,040) $(4,057)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization  1,196   1,511 
Amortization of debt issuance costs  249   226 
Share-based compensation expense  60   161 
Provision for doubtful accounts  88   243 
Unrealized loss on change in fair value of investments  -   70 
Changes in operating assets and liabilities:        
Accounts receivable  1,237   2,335 
Inventory  695   (2,464)
Prepaid expenses and other current assets  315   (726)
Other assets  1   - 
Accounts payable and accrued expenses  1,111   1,827 
Net cash provided by (used in) operating activities $912  $(874 )
CASH FLOW FROM INVESTING ACTIVITIES        
Purchases of property and equipment  (29)  (483)
Net cash used in investing activities $(29 ) $(483 )
CASH FLOW FROM FINANCING ACTIVITIES        
Principal payments on lease obligations  (608)  (586)
Payments on notes payable  (79)  (58)
Net cash used in financing activities $(687 ) $(644 )
         
Change in cash and cash equivalents  196   (2,001)
Cash and cash equivalents-beginning of year  1,098   7,887 
Cash, cash equivalents -end of period $1,294  $5,886 
         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION       
Cash paid during the period for interest $821  $1,018 
Cash paid during the period for income taxes $-  $268 
         
OTHER NONCASH INVESTING AND FINANCING ACTIVITIES        
Purchase of property and equipment not yet paid for $8  $79 
  
The table below reconciles Net Loss to Adjusted EBITDA
for the periods indicated.
 

 

  
LOWELL FARMS INC.
EBITDA – Non-GAAP measure
 
  
  Three Months Ended 
  March 31,  March 31, 
(in thousands)2023  2022 
Net loss $(4,040 ) $(4,057 )
Interest expense 1,659   1,310 
Provision for income taxes49   75 
Depreciation and amortization in cost of goods sold  1,090   1,260 
Depreciation and amortization in operating expenses  106   108 
Depreciation and amortization in other income (expense)  -   143 
EBITDA(1) (1,136 )  (1,161 )
Investment and currency (gains)/ losses  -   70 
Share-based compensation60   161 
Transaction and other special charges  -   30 
Adjusted EBITDA(1) $(1,076 ) $(900 )
(1)Non-GAAP measure