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May 4 , 2021 CA LOWELL FARMS ARTE AUCTA US ESTD 1909 * Lowell Farms Inc. Announces First Quarter 2021 Financial Results Vertically - integrated cannabis leader finishes quarter with multiple post merger successes and strong position for future expansion SALINAS , Calif . , May 04 , 2021 ( GLOBE NEWSWIRE ) -- Lowell Farms Inc. ( the " Company " ) ( CSE : LOWL ; OTCQX : LOWLF ) , a leading , vertically - integrated , California - focused cannabis company , announced revenue and operating results for the first quarter ( ended March 31 , 2021 ) . All figures stated are in US Dollars and are on a US GAAP basis . First Quarter Financial Highlights : • Revenue generated for the three - month period ended March 31 , 2021 was $ 11.0 million ; an increase of 17 % from the Q1 2020 and an increase of 20 % over the preceding quarter . • Adjusted EBITDA for the three - month period ended March 31 , 2021 , was ( $ 4.6 million ) , which approximates adjusted EBITDA in Q1 2020. See " Use of Non - GAAP Financial Information " below . • Operating expenses were $ 4.2 million for the three - month period ended March 31 , 2021 , compared to $ 5.4 million in the first quarter of the prior year . • Gross margin was negative 13 % compared to negative margin of 18 % in the first quarter of last year . Operating loss of $ 5.7 million compared to operating loss of $ 7.1 million in Q1 2020 . Recent harvests have begun to exceed pre - stress yields which is encouraging for Q2 and beyond , but revenue in the current quarter continued to be impacted by lower yields experienced from cultivation as a result of plant stress from the wildfires and extreme temperatures in the late summer . Revenues were also impacted by the decision to continue to significantly reduce lower margin third party agency and distributed brand sales and focus primarily on higher margin owned brand products . " We enter the new quarter with confidence that our greatest challenges are behind us , " says Lowell Farms Inc. Chief Executive Officer Mark Ainsworth . " While we saw improvements in revenue year - over - year , the results showcased in this quarter still reflect the headwinds we