Lowell Farms Inc.: M&A transaction — Lowell Farms surrenders cultivation lease; faces >$36M landlord lawsuit

Lowell Farms Inc.

Cypress subsidiary vacated 10-acre Zabala Road facility on Jan 12, 2024; 255,000 sq ft greenhouses surrendered.
Landlord terminated lease Oct 2023 after failed settlement; company sued for breach, landlord counterclaimed for >$36M in accelerated rent and costs.
Company intends to vigorously defend; no assurance of outcome or potential damages.
Strategic alternatives committee formed Jan 2023 continues evaluation amid lease and litigation developments.

item 1.02 item 2.01 item 2.04 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.7

Lowell Farms Inc. completed a disposition involving Tinhouse, LLC for Surrender of possession of real property; Landlord claims damages of more than $36 million based on accelerated rent, attorney's fees, improvements, and other c (closed 2024-01-12).

Action: disposition
Counterparty: Tinhouse, LLC
Consideration: Surrender of possession of real property; Landlord claims damages of more than $36 million based on accelerated rent, attorney's fees, improvements, and other c
Closing: 2024-01-12

Exact text from the filing

ubsidiary of the Company, surrendered possession of approximately 10 acres of real property at 139 Zabala Road, Salinas, California (the “Zabala Road Property”) leased by Cypress pursuant to a Lease Agreement dated April 1, 2017 (the “Zabala Road Lease”) with Tinhouse, LLC, dba Tinhouse Partners, LLC, as landlord (the “Landlord”). Prior to vacating the premises on January 12, 2024, the Company had operated a cultivation facility, which includes four greenhouses totaling approximately 255,000 square feet, on the Zabala Road Property.

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Source: SEC EDGAR

accession 0001171843-24-000287

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