Acreage Holdings Reports First Quarter 2019 Financial Results
NEW YORK, May 28, 2019 (GLOBE NEWSWIRE) — Acreage Holdings, Inc. (“Acreage”) (CSE: ACRG.U) (OTCQX: ACRGF) (FSE: 0VZ) reported financial results for the quarter ended March 31st, 2019. Financial statements and management’s discussion and analysis for the period were filed on Acreage’s SEDAR profile at www.sedar.com, and on the investor relations section of the Acreage website at investors.acreageholdings.com.
FIRST QUARTER FINANCIAL HIGHLIGHTS
- Reported revenue of $12.9 million, up 487% compared to the same period in 2018.
- Pro forma revenue* was $33.1 million.
- Reported a net loss of $31.2 million.
- Pro forma adjusted net loss*, which excludes certain non-cash charges and non-recurring items, was $15.5 million.
- Six The Botanist branded dispensaries opened in New York, North Dakota, and Ohio and one dispensary was acquired on pro forma basis in Nevada.
- Deployed more than $100 million of capital through acquisitions and capital expenditures.
*Acreage issued a detailed presentation of Acreage’s fiscal first quarter results, including definitions and reconciliations for non-International Financial Reporting Standards (“IFRS”) measures (see note regarding non-IFRS measures below), which can be viewed on our website at investors.acreageholdings.com.
I am pleased with the progress we made toward increasing our national footprint and particularly our expansion in the western United States. Our revenues grew by 487% compared to the first quarter of 2018, despite delayed dispensary openings caused by local regulators in both Massachusetts and Ohio.
Kevin Murphy, Founder, Chairman and Chief Executive Officer of Acreage
We do not expect these delays to impact our long-term ability to generate industry-leading returns. Additionally, we expect our arrangement agreement with Canopy Growth will provide us the ability to rapidly accelerate our growth plan as the transaction makes us the most attractive partner in U.S. cannabis.
SUBSEQUENT SECOND QUARTER EVENTS
- Closed on its acquisition of Form Factory.
- Announced the acquisition of Deep Roots Medical LLC, a leading vertically integrated operator in Nevada with licenses to open up to seven dispensaries.
- Entered into an arrangement agreement with Canopy Growth Corporation (“Canopy Growth”), whereby Canopy Growth will acquire all outstanding shares of Acreage assuming approval of shareholders of both companies, at such time the laws of the United States change such that Canopy Growth is permitted to acquire Acreage.
- Announced shareholders in aggregate holding approximately 91% (exceeding the 66 2/3% required threshold) of all votes eligible to be cast at the special meeting of Acreage shareholders to be held on June 19, 2019 (the “Special Meeting”) have indicated support “FOR” the Canopy Growth agreement. This includes approximately 38% of votes eligible to be counted for purposes of the disinterested shareholder approval, which requires a majority of votes cast at the Special Meeting.
EARNINGS CALL DETAILS
Acreage will host a conference call with management on Wednesday, May 29th at 8:30 AM Eastern Daylight Time. The call will be webcast and can be accessed at investors.acreageholdings.com. To listen to the live call, please go to the website at least 15 minutes early to register, download and install any necessary audio software.
ABOUT ACREAGE HOLDINGS, INC.
Headquartered in New York City, Acreage is the largest vertically integrated, multi-state operator of cannabis licenses and assets in the U.S. with respect to the number of states with cannabis related licenses, according to publicly available information. Acreage owns licenses to operate or has management or consulting services agreements with license holders to assist in operations of cannabis facilities in 20 states (including pending acquisitions) with a population of approximately 180 million Americans, and an estimated 2022 total addressable market of more than $17 billion in legal cannabis sales, according to Arcview Market Research. Acreage is dedicated to building and scaling operations to create a seamless, consumer-focused branded cannabis experience. Acreage’s national retail store brand, The Botanist, debuted in 2018.
The detailed presentation referenced above and found on Acreage’s website at investors.acreageholdings.com, under “Results Center,” contains tables that reconcile Acreage’s results of operations reported in accordance with IFRS to adjusted results that exclude the impact of certain items identified as affecting comparability (non-IFRS). We use pro forma results among other measures, to evaluate our actual operating performance and for planning and forecasting future periods. Pro forma results are IFRS reported results plus the results of all entities for which we have a management contract in place, and pending acquisitions, but do not consolidate due to a lack of control, adjusted to reflect the full fiscal period regardless of when an acquisition or management contract commenced. We believe the adjusted results presented provide relevant and useful information for investors because they clarify our actual operating performance, make it easier to compare our results with those of other companies and allow investors to review performance in the same way as our management. Since these measures are not calculated in accordance with IFRS, they should not be considered in isolation of, or as a substitute for, our reported results as indicators of our performance, and they may not be comparable to similarly named measures from other companies.
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