Lowell Farms Inc. Announces Sale of Additional $2.2 Million of Convertible Debentures
SALINAS, Calif., Aug. 26, 2022 (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, along with its subsidiary, Indus Holding Company (“Subco”), has sold an additional $2.2 million of senior secured convertible debentures of Subco (“Additional 2022 Convertible Debentures”), bringing the total, including the sale of convertible debentures announced on August 19, 2022, to $6.4 million. The Additional 2022 Convertible Debentures are convertible into an aggregate of 9.3 million subordinate voting shares of the Company (“Subordinate Voting Shares”) with respect to principal and additional Subordinate Voting Shares upon conversion of accrued and unpaid interest. Investors in the Additional 2022 Convertible Debentures received warrants of the Company to purchase an aggregate of 9.3 million Subordinate Voting Shares and warrants of Subco to purchase an aggregate of 14 million non-voting common shares of Subco.
The terms of the Additional 2022 Convertible Debentures are identical to the 2022 Convertible Debentures announced on August 19, 2022 and are part of the same series of convertible debentures issued in connection with the Company’s and Subco’s April 2020 convertible debenture financing. Proceeds from the sale of the Additional 2022 Convertible Debentures are contemplated to be used for working capital purposes, automation investments and expansion into new markets.
More information about Lowell Farms Inc. brands can be found at lowellfarms.com.
ABOUT LOWELL FARMS INC.
Lowell Farms Inc. (CSE:LOWL; OTCQX:LOWLF) (the “Company”) 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.