Acreage Holdings Reports Second Quarter 2019 Benefits
Announces Technique Leveraging Canopy Development IP, Brands and Technologies
NEW YORK, Aug. 13, 2019 (GLOBE NEWSWIRE) — Acreage Holdings, Inc. (“Acreage”) (CSE: ACRG.U) (OTCQX: ACRGF) (FSE: 0VZ) reported economic benefits for the quarter ended June 30th, 2019.
SECOND QUARTER Monetary HIGHLIGHTS
- Reported second quarter income of $17.7 million, a 501% boost compared to the exact same period in 2018
- Pro forma income* for the second quarter was $36.six million
- Reported a net loss attributable to Acreage of $33.9 million
- Adjusted net loss* attributable to Acreage was $17.1 million
- Pro forma adjusted EBITDA* was a loss of $12. million
*Pro forma income, adjusted net loss and pro forma adjusted EBITDA are Non-IFRS measures. Please see discussion and reconciliation of Non-IFRS measures beneath.
Throughout the second quarter, we received overwhelming help from our shareholders and a final court order to proceed with our historic arrangement with Canopy Development. The arrangement unlocks important prospective and will aid additional position Acreage as the major cannabis operator in the United States.
Kevin Murphy, Chairman and Chief Executive Officer of Acreage
I am excited to share our approach leveraging Canopy Growth’s brands, technologies, and IP, which will give us a important benefit more than our competitors.
ACREAGE – CANOPY ARRANGEMENT UPDATE
The following are important highlights of management’s approach leveraging Canopy Growth’s technologies, systems, IP, brands, and know-how. As management continues to discover the vast wealth of possibilities, Acreage anticipates adding to the approach.
- In addition to the Botanist, we will start leveraging Tweed and Tokyo Smoke dispensaries across the U.S.
- Continue with national launch of internally created home of brands – The Botanist, Reside Resin Project, All-natural Wonder
- Expand brand portfolio using Canopy Development created Tweed solutions in 2020
- Launch Spectrum Therapeutics healthcare cannabis brand in 2020
- Evaluate all facilities in style, pre-building, and building phases to leverage Canopy Development systems, technologies, IP, and processes at our choice
- Commercialize Canopy Development and ebbu created IP for each in-home and co-packed brands by way of Type Factory, unlocking speed to market place with revolutionary solutions and most likely yielding expense savings
- Evaluating irrespective of whether to voluntarily adopt Canopy Development IT systems and architecture for prospective synergies
- Evaluating getting into into more agreements with Canopy Development to use other administrative, back workplace functions, and strategic vendor relationships
“We stay deeply committed to the arrangement to obtain Acreage Holdings,” remarked Mark Zekulin, Chief Executive Officer of Canopy Development. “We help their revised path forward and are really considerably hunting forward to getting in a position to share that vision – as soon as federally permissible – to continue developing the partnership and our combined footprints inside the United States.”
Constellation Brands, the biggest shareholder of Canopy Development Corporation, expressed its help of the Canopy-Acreage agreement and the independent paths every is taking to fulfill their respective visions for cannabis not only in the United States, but globally as nicely.
“With the combined strengths Constellation Brands, Canopy Development and Acreage Holdings bring to the table, no group is improved positioned to win in the U.S. market place when cannabis becomes federally permissible,” stated Bill Newlands, President and CEO, Constellation Brands. “Acreage’s operational and retail assets collectively with Canopy’s IP, brands and solution improvement capabilities, all supported by an unmatched balance sheet, will outcome in a strong alliance with fantastic prospects for the future upon federal legalization in the U.S.”
EARNINGS Get in touch with Facts
Acreage will host a conference contact with management on Wednesday, August 14th at eight:30 AM Eastern Daylight Time. The contact will be webcast and can be accessed at investors.acreageholdings.com. To listen to the reside contact, please go to the site at least 15 minutes early to register, download and set up any vital audio software program.
ABOUT ACREAGE HOLDINGS, INC.
Headquartered in New York City, Acreage is 1 of the biggest vertically integrated, multi-state operators of cannabis licenses and assets in the U.S., according to publicly obtainable details. Acreage owns licenses to operate or has management or consulting solutions or other agreements in spot with license holders to help in operations in 20 states (such as pending acquisitions) with a population of around 180 million Americans, and an estimated 2022 total addressable market place of $16.7 billion in legal cannabis sales, according to Arcview Marketplace Investigation. Acreage is devoted to developing and scaling operations to build a seamless, customer-focused branded cannabis practical experience. Acreage’s national retail retailer brand, The Botanist, debuted in 2018.
On June 27, 2019 Acreage implemented an arrangement below section 288 of the Enterprise Corporations Act (British Columbia) (the “Arrangement”) with Canopy Development Corporation (“Canopy Growth”). Pursuant to the Arrangement, the Acreage articles have been amended to present Canopy Development with an choice to obtain all of the issued and outstanding shares in the capital of Acreage, with a requirement to do so, upon a transform in federal laws in the United States to permit the basic cultivation, distribution and possession of marijuana (as defined in the relevant legislation) or to eliminate the regulation of such activities from the federal laws of the United States (the “Triggering Event”), topic to the satisfaction of the situations set out in the arrangement agreement entered into amongst Acreage and Canopy Development on April 18, 2019, as amended on May well 15, 2019 (the “Arrangement Agreement”). Acreage will continue to operate as a stand-alone entity and to conduct its company independently, topic to compliance with specific covenants contained in the Arrangement Agreement. Upon the occurrence or waiver of the Triggering Occasion, Canopy Development will exercising the choice and, topic to the satisfaction or waiver of specific situations to closing set out in the Arrangement Agreement, obtain (the “Acquisition”) every of the Subordinate Voting Shares (following the automatic conversion of the Class B proportionate voting shares and Class C numerous voting shares of Acreage into Subordinate Voting Shares) in exchange for the payment of .5818 of a popular share of Canopy Development per Subordinate Voting Share (topic to adjustment in accordance with the terms of the Arrangement Agreement). If the Acquisition is completed, Canopy Development will obtain all of the Acreage Shares, Acreage will turn out to be a wholly owned subsidiary of Canopy Development and Canopy Development will continue the operations of Canopy Development and Acreage on a combined basis. For additional details about the Arrangement and the Acquisition please see the respective details circulars of every of Acreage and Canopy Development dated May well 17, 2019, which are obtainable on Canopy Growth’s and Acreage’s respective profiles on SEDAR at www.sedar.com. For more details relating to Canopy Development, please see Canopy Growth’s profile on SEDAR at www.sedar.com.
*NON-IFRS MEASURES, RECONCILIATION AND DISCUSSION
This release includes tables that reconcile our benefits of operations reported in accordance with International Monetary Reporting Measures (“IFRS”) to adjusted outcome that exclude the influence of specific products identified as affecting comparability (non-IFRS). We use EBITDA, adjusted EBITDA, adjusted net loss attributable to Acreage, managed benefits of operations, and pro forma benefits of operations amongst other measures, to evaluate our actual operating overall performance and for preparing and forecasting future periods. We think the adjusted benefits presented present relevant and beneficial details for investors for the reason that they clarify our actual operating overall performance, make it less complicated to evaluate our benefits with these of other organizations and permit investors to overview overall performance in the exact same way as our management. Considering that these measures are not calculated in accordance with IFRS, they ought to not be regarded in isolation of, or as a substitute for, our reported benefits as indicators of our overall performance, and they might not be comparable to similarly named measures from other organizations. The tables beneath reconcile our benefits of operations in accordance with IFRS to the adjusted benefits pointed out above:
Original press release
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