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Lowell Farms strikes deal to manage two Los Angeles cannabis stores

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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.”

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09Oct3944692Lowell_MSA_SunnysideCollective



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Appeals court ruling deals blow to Cannabis Commission – Cannabis Business Executive

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Appeals court ruling deals blow to Cannabis Commission – Cannabis Business Executive – Cannabis and Marijuana industry news





























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Virginia lawmakers renew push for legal cannabis marketplace – Cannabis Business Executive

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Massachusetts regulators order single-lab testing to combat cannabis lab shopping

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Massachusetts regulators will require cannabis businesses to use a single laboratory for all compliance testing in an effort to prevent companies from shopping around for favorable test results.

The state’s Cannabis Control Commission voted 3-0 to require licensed businesses submit testing samples to one independent laboratory starting April 1, 2025, according to an administrative order advanced Thursday. The new rule is meant to close loopholes that some say have allowed companies to shop around for labs to juice their numbers for market share.

“This administrative order continues our mission of being a strong regulator,” Acting Executive Director Debbie Hilton-Creek said in a statement.

Under current rules, companies can split testing among multiple labs. The practice has led some facilities to report suspiciously high THC levels or overlook contamination to attract business.

The commission’s enforcement team said the changes would reduce risks of noncompliant products reaching consumers and improve audit capabilities. The move follows a November listening session in which testing concerns were raised, according to the announcement.

If an original testing lab needs to subcontract work, they must first obtain commission approval and demonstrate they are “incapable of performing certain required tests due to a hardship.” Labs also can only subcontract with one other facility at a time.

“The commission shall only approve subcontracting agreements when the Originating Independent Testing Laboratory is incapable of performing certain required tests due to a hardship relative to its facilities, instrumentation, personnel, or required consumable materials or in the event of an actual or potential conflict of interest,” according to the order.

Results must be uploaded to the state’s tracking system within 72 hours, with all certificates of analysis containing the complete testing results, including any subcontracted work, it said.

The commission will also begin publishing THC test results on its public data platform and establishing regular meetings with licensed laboratories to improve oversight.

The commission thus far has struggled to implement effective testing oversight. Earlier this year, the agency contracted with a private lab for a “secret shopper” program to verify retail products’ test results, Green Market Report previously reported. Unlike other major cannabis markets such as California and Colorado, Massachusetts lacks a state reference lab to independently verify commercial lab results.

Analysis of testing data by MCR Labs found that across multiple states, laboratories reporting higher THC concentrations tend to increase their market share while those reporting average failure rates lose business, according to Chemical & Engineering News.



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