Acreage Holdings, Inc. (“Acreage” or the “Company”) (CSE:ACRG.A.U, ACRG.B.U), (OTCQX: ACRHF, ACRDF), a vertically integrated, multi-state operator of cannabis cultivation and retailing facilities in the U.S., today announced that it has executed and closed an amendment (the “Amended Agreement”) to its previously announced asset purchase and services agreement (the “Original Agreement”) with Chalice Brands Ltd. (the “Buyer” or “Chalice”) (CSE:CHAL) (OTCQB:CHALF), completing the sale of the Company’s four Oregon retail dispensaries (the “Dispensaries”) branded as Cannabliss & Co. (“Cannabliss”).
“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,” said Peter Caldini, Chief Executive Officer of Acreage. “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.”
Under the terms of the Amended Agreement, the Buyer has acquired the assets of the Dispensaries for US$6,500,000 (“Purchase Price”), consisting of a US$250,000 payment previously made at the signing of the Original Agreement, plus an additional US$100,000 in cash at closing, offset by a deduction of US$300,000 from the Purchase Price to settle the accounts payable to the Buyer. The remaining amounts owing of US$5,850,000 have been satisfied by a 36-month secured promissory note (the “Note”) bearing interest at a rate of 12% per annum. Under the terms of the Note, quarterly interest payments commence on January 1, 2023, principal payments of US$1,000,000 million are due on January 1, 2024 and January 1, 2025, and the remaining principal is due on January 1, 2026.