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 that it has entered into a definitive asset purchase and services agreement (“The Agreement”) with Chalice Brands Ltd. (the “Buyer”) (CSE:CHAL) (OTCQB:CHALF), pursuant to which the Buyer will purchase the assets and assume the operations of Acreage’s four Oregon retail dispensaries branded as Cannabliss & Co. (“Cannabliss”). This transaction will complete the sale of Acreage’s operations in Oregon and is a further expression of Acreage’s commitment to focus on its core states.
The Agreement Highlights:
- Under the terms of the Asset Purchase Agreement, upon regulatory approval Acreage will divest the assets of its four Cannabliss retail stores (inclusive of a working capital surplus of US $500,000) – located in Portland, Eugene, and Springfield, Oregon – for total consideration of US $6,500,000, consisting of a US $250,000 cash payment at the time of signing and a 10-month secured promissory note for US $6,250,000 bearing interest of 6% for the first 5 months and 10% for the remaining 5 months.
- Under the terms of the Services Agreement, Acreage will transition the management of the Cannabliss retail operations to the Buyer immediately upon signing, with the Buyer ensuring break-even operations throughout the life of the Services Agreement.
“The sale of our Oregon operations represents another strategic step in our previously announced operating strategy,” stated Peter Caldini, Acreage Holdings CEO. “As we previously communicated, Acreage remains focused on our three key strategic objectives – driving profitability, strengthening our balance sheet, and accelerating our growth in our core markets.”
With the sale of the Cannabliss retail operations, Acreage has exited Oregon which was negatively affecting the company’s bottom line and utilizing management resources. Acreage will focus its resources on its core markets which will drive outsized returns for shareholders.