Lowell Farms strikes deal to manage two Los Angeles cannabis stores | How to buy Skittles Moonrock online

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California-based Lowell Farms Inc. (CSE: LOWL) (OTCQX: LOWLF) is expanding into retail, announcing Wednesday it has reached agreements to manage two Los Angeles dispensaries with an option to buy them.

According to a management services agreement, Lowell Farms’ wholly owned subsidiary, Mercati Dei Fiori, LLC, assumed operational management of the retail stores – Rose Collective in Venice and Sunnyside Collective in Westwood – on Oct. 1. The agreements include an option for Lowell Farms to acquire equity ownership in the future. Financial terms weren’t disclosed.

“These agreements mark a significant milestone for Lowell Farms as we continue to navigate the difficult California cannabis landscape,” Ann Lawrence, newly appointed executive chairperson, said in a statement.

“This partnership is built on shared values and a unified vision for success. By combining our expertise and leveraging operational synergies, our goal is to create a vertically integrated model that will provide a strong platform for brands and enhance the retail experience for our customers.”

The move looks to boost Lowell’s presence in California by controlling more of the supply chain. The company said that could improve efficiency and profit margins while providing better consumer insights.

Lawrence, a board member since 2022, will lead the retail push. She previously worked as a partner at a global law firm that specialized in distressed retail mergers.

The potential store acquisitions aren’t guaranteed, and Lowell said there’s no assurance it will finalize deals “in a timely fashion, or at all.”

California’s cannabis industry has struggled with oversupply and competition from illicit sellers. Lowell’s expansion into retail could help it adapt to those challenges. The firm said the management agreements will end when it acquires the stores, both parties agree to terminate or under other specified circumstances.

Lowell has faced financial challenges in recent quarters. In its second quarter earnings report, the company reported a net loss of $798,000, thought that was a a 72% improvement sequentially. Net revenue for that quarter, which ended on June 30, was down 50% year-over-year to $3.5 million and down 27% sequentially.

The company partially blamed its slump on an exit from the bulk product wholesale business in January. Lowell also cited a “significant decrease in California market purchasing trends and instability in flower purchase price.”