Lowell Farms' New Cannabis Processing Facility Has Plans To Process 250 Tons Of Flower Annually

Lowell Farms Inc. LOWL LOWLF announced Tuesday that it has purchased property and related assets and is commissioning a first-of-its-kind cannabis processing facility in Salinas Valley, California.

The new facility, located in Monterey County in the vicinity of the company’s flagship cultivation operation, can process 250,000 lbs. of wholesale cannabis flower per year, including drying, bucking, trimming, sorting, grading and packaging.

The Salinas-based company paid $9 million in cash to C Quadrant LLC and issued 7,997,520 of its subordinate voting shares for the acquired assets.

In addition, Lowell entered into a five-year fixed-rate loan with associates of Viridescent Realty Trust, Inc. to fund the cash portion of the transaction.

“We are commissioning LFS to answer a pressing need in the market for which we see no other solution in sight,” George Allen, the company’s chairman, said.

The 10-acre, 40,000 square foot processing facility includes eight environmentally-controlled, segregated drying rooms, each of which processing 30,000 pounds of wet cannabis plant material every month.

Moreover, its 70 flexible trimming stations placed in the facility’s bucking and trimming area are projected to produce up to 800 pounds of cannabis flower on a daily basis.

The company expects that the new operation will process almost all the cannabis it grows locally.

“We seek to service the massive and fast-growing cannabis cultivation industry in California, not to compete with it,” Allen continued. “Large-scale processing and automation are the missing pieces that will make California cannabis dominant in this exciting new frontier.”

Photo by Jeff W on Unsplash

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CannabisM&ANewsMarketsGeorge Allen
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis rescheduling seems to be right around the corner

Want to understand what this means for the future of the industry? Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.


Loading...