Lowell Farms Inc. (LOWLF)

[kahlua]

1) Recent quarterly cash burn was around $2.1M (down $7.9 to $5.8 sequentially). This was a huge improvement over the prior quarter.
2) The cult tax will impact Q3 forward as it went into effect July 1. It should be about $1.5M in quarterly tax savings ($160 per lb X 38K lbs).
3) The 15% excise tax is shifting from distributors to retail point of sale but this is just a change of who collects the tax, so no additional windfall for Lowell with this change.
4) Yes, the key for Lowell is scale, velocity and margins. Right now, they have the scale. Next they need to funnel formerly wholesale product into the retail cpg segment, enter the Lowell 35’s and I imagine their kid brother House weed prerolls. With the automated equipment on hand, it’s clear George envisions high velocity for Lowell’s prerolls. Margins are excellent for the 35’s.