18.  SUBSEQUENT EVENTS

On October 9, 2024, the Company announced that it entered into management services agreements with two cannabis retail dispensaries located in Los Angeles, California. Under the terms of the agreements, Lowell Farms will assume operational management of the retail stores, with an option to acquire equity ownership through a non-binding letter of intent.  The management services agreements commenced as of October 1, 2024, and terminate upon the earlier to occur of (i) the Company’s acquisition of the equity interests of the retail dispensaries, (ii) by mutual agreement of the applicable parties, or (iii) upon the occurrence of certain other customary circumstances specified in the management services agreements. There can be no assurance that the Company will enter into definitive agreements to acquire the equity ownership of the retail stores in a timely fashion, or at all.

Concurrently with entering into the management services agreements, the Company appointed Ms. Ann Lawrence, a current director, as the Executive Chairperson of the Company. Ms. Lawrence joined the board of directors of the Company in 2022.

The Company has evaluated potential subsequent events through November 12, 2024, the date the unaudited financial statements were available to be issued. No other material subsequent events were identified.