Acreage Holdings, Inc. (“Acreage”) (CSE: ACRG.A.U, ACRG.B.U), (OTC: ACRHF, ACRDF), a multi-state operator of cannabis cultivation and retailing facilities in the U.S., today announced the closing of the acquisitions of cultivation, processing and retail operations in Ohio by its subsidiary, High Street Capital Partners, LLC (“High Street”). As previously announced, Acreage entered into purchase agreements for these operations in Ohio during the summer of 2018 for the total purchase price of approximately $7.1 million in cash, $7.1 million in notes and 1.1 million shares of High Street, which are convertible into shares of Acreage, with the remaining $3.3 million worth of notes repaid today. Under the terms of the agreements, Acreage acquired all of the membership interests of Greenleaf Gardens, LLC, which operates a cultivation license in Ohio, Greenleaf Therapeutics, LLC, which operates a processing license in Ohio and Greenleaf Apothecaries, LLC, which operates five retail dispensaries in Ohio (together “Greenleaf”). Upon completion of these acquisitions, Acreage will subsequently consolidate the results of Greenleaf into its consolidated financial statements.
- Cultivation and Processing:
- Greenleaf’s cultivation and processing operations are located in a 70,000 square foot facility in Middlefield, OH, and include 8 acres of land which will allow for future expansion.
- Greenleaf produces a variety of high-quality cannabis products including edibles, vapes, concentrates, tinctures, capsules and flower.
- In addition to direct sales through its retail dispensaries, Greenleaf also sells product through its wholesale channels to 40 of the 56 medical cannabis dispensaries currently operating in Ohio.
- Retail Operations:
- Greenleaf’s retail operations in Ohio include 5 operational dispensaries, branded The Botanist, in Akron, Canton, Cleveland, Columbus and Wickliffe.
- Greenleaf is a leading cannabis retailer in the state of Ohio with an average of 30,000 transactions per month and an estimated retail market share of approximately 20%.
“The closing of our acquisition of Greenleaf’s operations in Ohio will significantly strengthen both our operating asset base and our long-term financial performance,” said Peter Caldini, Chief Executive Officer of Acreage. “The cannabis market in Ohio is rapidly growing and with some of the highest quality assets in the State, we are well positioned to continue to lead its development. This transaction demonstrates our continued focus on our three key strategic objectives – driving profitability, strengthening our balance sheet, and accelerating our growth in our core markets.”