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Wednesday, Aug 17, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

Acreage finishes selling Cannabliss & Co., ends Oregon operations

The company says this was a strategic step forward

New Jersey starts accepting applications for adult-use pot shops this week
Photo via Acreage

Acreage Holdings, Inc. (CSE: ACRG.A.U, ACRG.B.U) (OTCQX: ACRHF, ACRDF) has completed the sale of its Cannabliss & Co. pot shops in Oregon and says it will focus on its Northeastern market.

On Tuesday, the company announced it has closed an amendment to its last purchase agreement with Chalice Brands Ltd. (CSE:CHAL) (OTCQB:CHALF) and completed the sale of its four Oregon retail pot shops.

Under the amended agreement, Chalice acquired the shops for US$6.5 million which consist of a US$250,000 early payment that was due at signing the agreement plus an additional US$100,000 in cash at closing with a deduction of US$300,000 from the price to settle the accounts payable to Chalice.

The remaining amount of US$5.8 million have been satisfied by a 36-month secured promissory note bearing interest at a rate of 12 per cent per annum.

“We are pleased to bring this transaction to a close and conclude our operations in Oregon, having completed the sale of our cultivation facility earlier this year,” Acreage CEO Peter Caldini said.

“Our departure from Oregon is a strategic step forward, allowing us to dedicate our time and resources to our core Northeastern footprint where we see tremendous opportunities for future growth, particularly in the recently expanded New Jersey market and the impending adult-use markets in New York and Connecticut,” Caldini explained.

Acreage stocks went up on Tuesday by 1.52 per cent to $0.67 on the Canadian Securities Exchange.

The company owns the retail store brand The Botanist and is headquartered in New York City. Its products include the brands The Botanist, Superflux, Tweed, Prime and the Innocent brand in Illinois.

It also owns Universal Hemp, LLC, a hemp subsidiary dedicated to the distribution, marketing and sale of CBD products throughout the U.S.

Read more: Acreage boosts annual sales 65% to US$188.9M

Read more: Acreage gets US$150M credit facility

 

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