SALINAS, Calif., Aug. 23, 2023 — Lowell Farms Inc. (the “Company”) (CSE: LOWL; OTCQX: LOWLF), a California-born vertically integrated cannabis company with advanced production capabilities including cultivation, extraction, manufacturing, and distribution, announces it is consolidating all of its subordinate voting shares (“Subordinate Voting Shares”) on the basis of one post-consolidation Subordinate Voting Share for every ten pre-consolidation Subordinate Voting Shares, effective August 31, 2023 (the “Effective Date”). The Company’s outstanding super voting shares (“Super Voting Shares”) will also be consolidated on the same basis as of the Effective Date (collectively, the “Consolidation”).
As a result of the Consolidation, the number of issued and outstanding Subordinate Voting Shares will be reduced from 112,761,904 to approximately 11,276,190, subject to adjustment for rounding, and the number of Super Voting Shares will be reduced from 202,590 to 20,259. Each shareholder’s percentage ownership in the Company and proportional voting power will remain unchanged, except for minor adjustments resulting from the treatment of fractional shares.
No fractional shares will be issued in connection with the Consolidation. If a holder of Subordinate Voting Shares would otherwise be entitled to a fraction of a share, then the number of post-Consolidation Subordinate Voting Shares issuable to such shareholder shall be rounded up to the next higher whole number if the fraction is equal to or greater than one-half and rounded down to the next lower whole number if the fraction is less than one-half. No cash consideration will be paid in respect of fractional shares. The exercise or conversion price and the number of Subordinate Voting Shares issuable under any of the Company’s outstanding convertible securities will be proportionately adjusted in connection with the Consolidation.
The Subordinate Voting Shares will continue to trade on the CSE under the symbol “LOWL” and on the OTCQX under the symbol “LOWLF” on a post-Consolidation basis, under a new CUSIP number – 547572206. The Subordinate Voting Shares are expected to begin trading on a post-consolidation basis on the CSE when markets open on August 30, 2023.
Shareholders of record as of the Effective Date will receive a letter of transmittal from Odyssey Trust Company, the transfer agent for the Subordinate Voting Shares, providing instructions for the exchange of their Subordinate Voting Shares as soon as practicable following the Effective Date. Until surrendered, each share certificate representing pre-Consolidation shares will represent the number of whole post-Consolidation shares to which the holder is entitled as a result of the Consolidation.
ABOUT LOWELL FARMS INC.
Lowell Farms Inc. (CSE:LOWL; OTCQX:LOWLF) (the “Company”) is a California-based cannabis company with advanced production capabilities supporting every step of the supply chain, including cultivation, extraction, manufacturing, brand sales, marketing, and distribution. Lowell Farms grows artisan craft cannabis with a deep love and respect for the plant, and prides itself on using sustainable materials – from seed to sale – to produce an extensive portfolio of award-winning originals, including Lowell Herb Co., House Weed, and MOON for licensed retailers statewide.