Lowell Farms Inc C.LOWL

Indus Is A Tricky Case

[WeedIsMyLife]

Spending $30m to sell $10m in 3 mos is a scary place to "start". There's no automated packaging line on earth to pay for that type of OpEx.

It's hard to parse Rob's words when he talks about the greenhouse expansion, but anyone with any knowledge of scaling cannabis cultivation knows that you NEVER hit your numbers, or your expected QUALITY, for many many "turns" (harvests) after a new buildout. Now, presume they don't hit their projections, well what happens if the California cannabis market drops 25% or more as they're dialing in the operations? Now you're looking at a significant hit to those rev projections, even if they hit the 4000kg or whatnot.

Now looking at overall rev, if Q3 included a massive expansion of procurement of 3rd-party flower to put under their flower brand, then won't revenue go DOWN if they're truly committing to moving to in-house only sales? Margins will go up, but OpEx is OpEx. I may have missed in the report though if they talk about their exact projected expenses the next few quarters.

In terms of brands, they havne't done a good job at all. 18th in the state for their flower brand when they have the biggest grow in Monterey County? Very little press or esteem for their concentrate brand even though they had one of the first licensed manufacturing labs in the state? Almost no edible presence statewide even though they were THE original low-dose edible brand in a state that now ONLY has low-dose edibles? The fact that their brands are so middling is a lot of the reason they were unsuccessful in packaging 3rd-party flower--they must offer steep discounts for shelf-space because of how little brand-equity they've built up.

The market cap is lower than it should be on rev and their overall company size, but the cash burn and collapsing management team are massive red flags.

Just a few thougthts...

[RockMaschine]

And what company can I buy on the open market to get any exposure to the other 17 brands? Do you expect a company that was operating privately for 4+ years to go belly up just cause they went public? Do you have an account to post from that is more than one day old?

[WeedIsMyLife]

"And what company can I buy on the open market to get any exposure to the other 17 brands?" That is fair, this might be the best you can access, but doesn't change the fact that it could be overvalued based on their brand positions, and that their ranking is worth discussing and considering when evaluating the company. Do you expect a company that was operating privately for 4