Acreage Holdings Reports Second Quarter 2019 Final results
Announces Method 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 monetary benefits for the quarter ended June 30th, 2019.
SECOND QUARTER Economic HIGHLIGHTS
- Reported second quarter income of $17.7 million, a 501% boost compared to the similar 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 under.
For the duration of the second quarter, we received overwhelming assistance 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 top cannabis operator in the United States.
Kevin Murphy, Chairman and Chief Executive Officer of Acreage
I am excited to share our technique 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 crucial highlights of management’s technique 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 technique.
- 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 residence 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 alternative
- Commercialize Canopy Development and ebbu created IP for each in-residence and co-packed brands by way of Kind Factory, unlocking speed to marketplace with revolutionary solutions and probably yielding price savings
- Evaluating irrespective of whether to voluntarily adopt Canopy Development IT systems and architecture for prospective synergies
- Evaluating getting into into further 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 assistance their revised path forward and are really a great deal seeking forward to getting in a position to share that vision – as soon as federally permissible – to continue constructing the partnership and our combined footprints inside the United States.”
Constellation Brands, the biggest shareholder of Canopy Development Corporation, expressed its assistance 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 effectively.
“With the combined strengths Constellation Brands, Canopy Development and Acreage Holdings bring to the table, no group is far better positioned to win in the U.S. marketplace when cannabis becomes federally permissible,” stated Bill Newlands, President and CEO, Constellation Brands. “Acreage’s operational and retail assets with each other with Canopy’s IP, brands and solution improvement capabilities, all supported by an unmatched balance sheet, will outcome in a effective alliance with outstanding prospects for the future upon federal legalization in the U.S.”
EARNINGS Get in touch with Information
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 internet site at least 15 minutes early to register, download and set up any important audio software program.
ABOUT ACREAGE HOLDINGS, INC.
Headquartered in New York City, Acreage is a single of the biggest vertically integrated, multi-state operators of cannabis licenses and assets in the U.S., according to publicly offered info. Acreage owns licenses to operate or has management or consulting solutions or other agreements in location with license holders to help in operations in 20 states (which includes pending acquisitions) with a population of around 180 million Americans, and an estimated 2022 total addressable marketplace of $16.7 billion in legal cannabis sales, according to Arcview Industry Study. Acreage is devoted to constructing and scaling operations to make a seamless, customer-focused branded cannabis knowledge. Acreage’s national retail retailer brand, The Botanist, debuted in 2018.
On June 27, 2019 Acreage implemented an arrangement beneath section 288 of the Enterprise Corporations Act (British Columbia) (the “Arrangement”) with Canopy Development Corporation (“Canopy Growth”). Pursuant to the Arrangement, the Acreage articles had been amended to give Canopy Development with an alternative to obtain all of the issued and outstanding shares in the capital of Acreage, with a requirement to do so, upon a alter 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 get rid of 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 involving Acreage and Canopy Development on April 18, 2019, as amended on May perhaps 15, 2019 (the “Arrangement Agreement”). Acreage will continue to operate as a stand-alone entity and to conduct its small business independently, topic to compliance with particular covenants contained in the Arrangement Agreement. Upon the occurrence or waiver of the Triggering Occasion, Canopy Development will exercising the alternative and, topic to the satisfaction or waiver of particular 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 a number of voting shares of Acreage into Subordinate Voting Shares) in exchange for the payment of .5818 of a prevalent 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 come 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 a lot more info about the Arrangement and the Acquisition please see the respective info circulars of every of Acreage and Canopy Development dated May perhaps 17, 2019, which are offered on Canopy Growth’s and Acreage’s respective profiles on SEDAR at www.sedar.com. For further info with regards to Canopy Development, please see Canopy Growth’s profile on SEDAR at www.sedar.com.
*NON-IFRS MEASURES, RECONCILIATION AND DISCUSSION
This release consists of tables that reconcile our benefits of operations reported in accordance with International Economic Reporting Measures (“IFRS”) to adjusted outcome that exclude the effect of particular 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 give relevant and helpful info for investors for the reason that they clarify our actual operating overall performance, make it much easier to examine our benefits with these of other providers and let investors to overview overall performance in the similar way as our management. Because these measures are not calculated in accordance with IFRS, they should really not be viewed as in isolation of, or as a substitute for, our reported benefits as indicators of our overall performance, and they may possibly not be comparable to similarly named measures from other providers. The tables under reconcile our benefits of operations in accordance with IFRS to the adjusted benefits described above:
Original press release
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