John Schroyer
California-based Lowell Farms Inc. (CSE: LOWL) (OTCQX: LOWLF) lost just under $50 million in two years, with $24.6 million lost in 2022 and $24.7 million gone in 2021, according to the company’s fourth-quarter financial results.
Despite an increased crop yield last year, to 8,369 pounds of greenhouse-grown cannabis, fourth-quarter revenue fell to $9.3 million, down by 38% from the same period in 2021 and by 7% from Q3. Revenue for the full year was $43.5 million.
The company offset some of the downturn with an uptick in its raw cannabis wholesaling business, which went up 42% to $2.8 million in Q4. Out-of-state licensing revenues were also up, though that income only hit $1.6 million for the year.
Company leadership remained optimistic and made no mention of industry headwinds in a press release, but insisted the company is well-positioned for the future.
“We’re proud to remain at the forefront of innovation in the cannabis industry, with numerous accomplishments in the past year, including the acquisition of advanced pre-roll production equipment that has accelerated our ability to bring products to market,” CEO Mark Ainsworth said in the release.
“We remain laser-focused on further dialing in our efficiencies as well as leveraging the incredible infrastructure we have in place … to maintain our position in California,” Ainsworth said. “In the coming year we will continue to focus on growth.”
Ann Lawrence, chair of the company’s board of directors, added that leadership is “making strategic decisions to ensure a bright future for Lowell Farms, and we are dedicated to achieving financial stability.”
Lawrence recently replaced former Board Chair George Allen, who departed Lowell Farms earlier this month when the company sold off part of its portfolio to settle a $23 million debt.
