Lowell Farms Inc. (LOWLF)

[kahlua]

My notes and takeaways from the recent presentation:

Lowell owned 5% of CA preroll market with legacy products.
Launched 35’s on 9/29 in 16 stores - in 4 weeks went from 5% baseline to 13% for prerolls (up to 19% in some stores).
Minimal cannibilization on legacy side, early repeat buying data is solid.
Launch pace limited by product availability but by end of Oct expect to be in 100 stores.
Capacity expansion will continue to ramp through mid 2023.
Also planning to expand 35’s via licensing outside CA with boots on ground in 23 (is New York wishful thinking?).

Extraordinary value proposition for target consumer:
35’s pricing - below 88% of all flower in CA and priced Below 98% of all prerolls in CA.
Going after the heavy cannabis user highly price/quality sensitive.
Growth vector going forward: Increase output capacity and drive efficiency.
Win on quality, convenience and price.

Two questions jump out:
1) does product have staying power in a crowded and competitive market once “novelty” of 35s wears off?
2) if answer to #1 is yes then how do well capitalized competitors respond to losing significant share?

Exciting times to be a Lowell shareholder!