Acreage Holdings Inc - ACRHF stock
About Acreage Holdings[edit]
Description[edit]
Acreage Holdings, Inc. is a US-based company operating in the cannabis industry, engaged in the cultivation and processing of cannabis plants, production of branded consumer goods, distribution of cannabis flower and manufactured products, and retailing dosable cannabis products catering to both medical and adult recreational use customers. The company was established in 2011 and is headquartered in New York, New York.[1]
Origin[edit]
Acreage Holdings, Inc. was founded in 2011 by Kevin P. Murphy and John Boehner, along with other individuals, making it one of the early entrants in the cannabis industry. Kevin P. Murphy served as the company's CEO, bringing his experience as an investment manager to the venture, while John Boehner, a former U.S. House Speaker, joined the board of directors, bringing his political connections and influence. The company's primary focus was to establish a presence in the emerging cannabis market in the United States. It sought to take advantage of the changing legal landscape surrounding cannabis, with several states legalizing medical and adult-use marijuana. Acreage Holdings aimed to position itself as a prominent player in this evolving industry, taking on activities such as cultivation, processing, manufacturing consumer products, distribution, and retailing of cannabis-related goods.[2]
Throughout the years, Acreage Holdings expanded its operations, acquired various cannabis-related businesses, and established a notable presence in several states where cannabis was legalized. The company also attracted investments from significant players in the industry. As the cannabis industry grew and regulations evolved, Acreage Holdings faced both opportunities and challenges. Its early entry into the market provided a head start, but it also navigated complex legal and regulatory issues related to cannabis at the federal and state levels.[2]
Strategic Arrangement with Canopy[edit]
Acreage Holdings, Inc. has entered into an agreement called the "Floating Share Agreement" with Canopy Growth Corporation. This agreement states that, subject to approval from the holders of the Class D subordinate voting shares of Acreage (known as the "Floating Shares") and the terms outlined in the Floating Share Agreement, Canopy USA will acquire all the issued and outstanding Floating Shares. The consideration for this acquisition will be 0.4500 of a common share of Canopy (referred to as a "Canopy Share") for each Floating Share. The offer made in the Floating Share Agreement represents a premium of 17.2% to the Floating Shares, based on the volume-weighted average prices ("VWAP") of the Floating Shares and Canopy Shares during the 30-day trading period ending on October 24, 2022, on the Canadian Securities Exchange and Nasdaq Global Select Market, respectively. Additionally, Canopy has waived its option to acquire the Floating Shares under a previous arrangement, known as the "Existing Arrangement," which was implemented on September 23, 2020, pursuant to an arrangement agreement between Canopy and Acreage dated April 18, 2019 (referred to as the "Existing Arrangement Agreement").[3]
As part of the Floating Share Agreement, Canopy has agreed to exercise its option, known as the "Fixed Option," to acquire Acreage's outstanding Class E subordinate voting shares (known as the "Fixed Shares"). These Fixed Shares represent approximately 70% of the total shares of Acreage as of the current date. The exchange ratio for this acquisition will be fixed at 0.3048 of a Canopy Share for each Fixed Share. Upon exercising the Fixed Option and completing the Floating Share Arrangement, Canopy USA will become the sole owner of all outstanding Fixed Shares and Floating Shares. According to a press release issued by Canopy, upon exercising the Fixed Option and closing the Floating Share Arrangement, Canopy USA plans to exercise options to acquire 100% ownership of Mountain High Products, LLC, Wana Wellness, LLC, and The Cima Group, LLC (collectively known as "Wana"), as well as 100% ownership of Lemurian, Inc. ("Jetty"), which are either currently held or will be held directly or indirectly by Canopy USA. Additionally, Canopy USA is expected to retain its conditional ownership position in TerrAscend Corp.[3]
Brands[edit]
The Botanist[edit]
The Botanist brand includes two locations in Ohio which sell flower, vape and edibles products.[4]
Superflux[edit]
The Superflux brand is available in Illinois, Ohio and Massachusetts. [5] According to the company website, characteristics like leaf shape, flower size, genetic traits, smell, and trichomes, along with extensive data encompassing statistics such as cannabinoid content, terpenes, and purity levels, all contribute to the essence of cannabis. We dedicate ourselves to safeguarding this essence in each harvest and batch of concentrates and vapes we produce. Every step of the process is carefully curated to ensure the final product meets our standards of perfection. The joy of sharing these results with you serves as our ultimate reward. Superflux caters to those who are curious and seeking a higher level of flavor and sophistication in the art of cannabis cultivation.[6]
Prime[edit]
Prime products are available at over 150 stores in Pennsylvania which sell medical marijuana products.[7]
Funding[edit]
Private Placement June 2024[edit]
A private placement in June, 2024 raised $10,000,000 based on the sale of 12,000 units at a price of $833.33 per unit, with each unit consisting of $1,000 in convertible notes and fixed share purchase warrants.[8]
Financial Performance[edit]
Acreage Holdings has shown significant revenue growth in the past several years, however, losses and liabilities are very high.[9]
| Year Ending | Total Revenue | Net Income | Total Liabilities | Cash Balance |
|---|---|---|---|---|
| 12/31/2023 | $223,378,000 | ($69,092,000) | $359,323,000 | $13,631,000 |
| 12/31/2022 | $237,138,000 | ($139,876,000) | $320,394,000 | $24,067,000 |
| 12/31/2021 | $188,859,000 | ($63,010,000) | $287,281,000 | $43,180,000 |
| 12/31/2020 | $114,545,000 | ($286,588,000) | $302,344,000 | $32,542,000 |
| 12/31/2019 | $74,109,000 | ($150,268,000) | $196,883,000 | $26,505,000 |
- ↑ Yahoo Finance. ACRHF Stock Profile. Retrieved on 7/27/2023.
- ↑ 2.0 2.1 Wikipedia. Acreage Holdings. Retrieved on 7/27/2023.
- ↑ 3.0 3.1 GlobeNewswire. Acreage and Canopy Enter Into New U.S. Strategic Arrangement. October 25, 2022.
- ↑ shopbotanist.com. Products. Retrieved on 8/1/2023.
- ↑ superflux.com. Find Us. Retrieved on 8/1/2023.
- ↑ superflux.com. About. Retrieved on 8/1/2023.
- ↑ primewellnesspa.com. Where to Buy. Retrieved on 8/1/2023.
- ↑ Globe Newswire. Acreage Announces Completion of US$10 Million Private Placement. June 6, 2024.
- ↑ Yahoo Finance. ACRHF Financials. Retrieved on 8/1/2023.
