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 monetary final results for the quarter ended June 30th, 2019.
SECOND QUARTER Monetary HIGHLIGHTS
- Reported second quarter income of $17.7 million, a 501% improve 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 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 substantial prospective and will assist 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 method leveraging Canopy Growth’s brands, technologies, and IP, which will give us a substantial benefit more than our competitors.
ACREAGE – CANOPY ARRANGEMENT UPDATE
The following are important highlights of management’s method 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 method.
- In addition to the Botanist, we will commence leveraging Tweed and Tokyo Smoke dispensaries across the U.S.
- Continue with national launch of internally created property of brands – The Botanist, Reside Resin Project, All-natural Wonder
- Expand brand portfolio using Canopy Development created Tweed items in 2020
- Launch Spectrum Therapeutics healthcare cannabis brand in 2020
- Evaluate all facilities in design and style, pre-building, and building phases to leverage Canopy Development systems, technologies, IP, and processes at our selection
- Commercialize Canopy Development and ebbu created IP for each in-property and co-packed brands by way of Type Factory, unlocking speed to industry with revolutionary items and probably yielding price savings
- Evaluating whether or not 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 pretty a great deal hunting forward to becoming in a position to share that vision – after federally permissible – to continue creating the connection 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 each and 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. industry 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 potent alliance with fantastic prospects for the future upon federal legalization in the U.S.”
EARNINGS Contact Specifics
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 web site at least 15 minutes early to register, download and set up any important audio computer software.
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 accessible 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 industry of $16.7 billion in legal cannabis sales, according to Arcview Industry Study. Acreage is committed to creating and scaling operations to develop a seamless, customer-focused branded cannabis encounter. Acreage’s national retail retailer brand, The Botanist, debuted in 2018.
On June 27, 2019 Acreage implemented an arrangement below section 288 of the Small business 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 selection 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 take away 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 among Acreage and Canopy Development on April 18, 2019, as amended on Could 15, 2019 (the “Arrangement Agreement”). Acreage will continue to operate as a stand-alone entity and to conduct its enterprise independently, topic to compliance with particular covenants contained in the Arrangement Agreement. Upon the occurrence or waiver of the Triggering Occasion, Canopy Development will physical exercise the selection and, topic to the satisfaction or waiver of particular situations to closing set out in the Arrangement Agreement, obtain (the “Acquisition”) each and 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 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 grow 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 much more info about the Arrangement and the Acquisition please see the respective info circulars of each and every of Acreage and Canopy Development dated Could 17, 2019, which are accessible on Canopy Growth’s and Acreage’s respective profiles on SEDAR at www.sedar.com. For further info relating 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 final results of operations reported in accordance with International Monetary Reporting Measures (“IFRS”) to adjusted outcome that exclude the influence of particular products identified as affecting comparability (non-IFRS). We use EBITDA, adjusted EBITDA, adjusted net loss attributable to Acreage, managed final results of operations, and pro forma final results of operations amongst other measures, to evaluate our actual operating efficiency and for organizing and forecasting future periods. We think the adjusted final results presented present relevant and beneficial info for investors mainly because they clarify our actual operating efficiency, make it simpler to examine our final results with these of other businesses and let investors to critique efficiency in the exact same way as our management. Considering that these measures are not calculated in accordance with IFRS, they really should not be deemed in isolation of, or as a substitute for, our reported final results as indicators of our efficiency, and they could not be comparable to similarly named measures from other businesses. The tables under reconcile our final results of operations in accordance with IFRS to the adjusted final results pointed out above:
Original press release
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