NEW YORK, December 02, 2020 (GLOBE NEWSWIRE) – Acreage Holdings, Inc. (“Acreage” or the “Company”) (CSE: ACRG.AU, ACRG.BU), (OTCQX: ACRHF, ACRDF) today announced that it has entered into a construction finance loan with The Pelorus Fund, a real estate focused on cannabis. investment trust, which will be used to complete the expansion of its Illinois growing and processing plant, which is expected to close on or around December 3rd, 2020.
The loan provides for approximately $ 12 million in principal at an annual interest rate of 16% over an 18-month term. The proceeds will be used to fully construct the existing 80,000 square foot growing and processing facility. Construction is expected to be completed in the second quarter of 2021 and will increase Acreage’s ability to sell more of its own products through its dispensaries as well as through wholesale channels; The Company expects that such an increase in its capacities will lead to an improvement in the financial performance of the State. The Illinois facility will produce dried flower and oil extract products as well as THC infused beverages using intellectual property licensed from Canopy Growth Corporation. As previously announced, Acreage plans to launch Canopy Growth’s select THC drink formulations in Illinois and California in the summer of 2021.
ON THE AREA
Based in New York City, Acreage is a multi-state operator of cannabis cultivation and retail facilities in the United States, including the company’s national retail store brand, The botanist. Acreage’s wide range of nationally and regionally available cannabis products include the Botanist brand, the very recognizable Tweed brand, the First medical brand in Pennsylvania, the Innocent brand of edibles in Illinois and others. Acreage also owns Universal Hemp, LLC, a hemp subsidiary dedicated to the distribution, marketing and sale of CBD products across the United States Since its founding in 2011, Acreage has focused on building and bringing ‘scale of operations to create a transparent brand, consumer-oriented live. More information is available at www.acreageholdings.com.
On June 27, 2019, Acreage entered into an agreement under Section 288 of the Business Corporations Act (British Columbia) with Canopy Growth Corporation (“Canopy Growth”), which was subsequently amended on 23 September 2020 (the “Amended Arrangement”). . Pursuant to the Amended Arrangement, upon the occurrence (or waiver by Canopy Growth) of changes in federal laws in the United States to permit the general cultivation, distribution and possession of marijuana (as defined in the relevant legislation ) or to remove the regulation of such activities by United States federal laws (the “Trigger Event”), Canopy Growth, subject to the satisfaction or waiver of certain closing conditions, will acquire all of the shares from issued and outstanding category E subordinate voting rights (the “Fixed Shares”) on the basis of 0.3048 Canopy Growth shares per Fixed Share (following the automatic conversion of the category F multiple voting shares and subject to adjustment in accordance with the terms of the arrangement agreement entered into between Acreage and Canopy Growth on April 18, 2019, as amended on May 15, 2019 and September 23, 2020.
In addition, Canopy Growth holds an option, exercisable at the discretion of Canopy Growth, to acquire all of the issued and outstanding Class D subordinate voting shares (the “Floating Rate Shares”) at the time Canopy Growth acquires the fixed shares, for cash or Canopy Growth shares, as Canopy Growth may determine, at a price per floating share based on the 30-day volume weighted average price of the CSE floating shares relative to the Canopy Growth shares trading price at the time of the occurrence or waiver of the Trigger Event, subject to a minimum price of $ 6.41 per Floating Share.
For further information on the Amended Arrangement, please see Acreage’s Proxy Circular and Management Information Circular dated August 17, 2020 (the “Circular”) and the respective Information Circulars of Acreage. ” Acreage and Canopy Growth dated May 17, 2019, which are available on the respective profiles of Acreage and Canopy Growth on SEDAR at www.sedar.com and filed with the SEC on the EDGAR website at www.sec.gov. For more information on Canopy Growth, please see Canopy Growth’s profile on SEDAR at www.sedar.com.
This press release and each of the documents referred to herein contain “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws in Canada and the United States, respectively. All statements, other than statements of historical fact, included herein are forward-looking information, including, for greater certainty, statements regarding the terms and intended use of the loan proceeds, the Amended Arrangement, including including the likelihood of its occurrence, the occurrence or waiver of the triggering event, the satisfaction or waiver of the closing conditions set forth in the Arrangement Agreement and other statements regarding the proposed transactions with Canopy Growth. Often, but not always, forward-looking statements and information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, ” estimates “,” intend “,” anticipates “or” does not anticipate “, or” believes “, or variations of these words and phrases or state that certain actions, events or results” may “,” could “,” would “,” could “or” will “be taken, occur or be achieved. In addition to this, you need to know more about it.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Acreage or its subsidiaries to be materially different from the future results, performance or achievements expressed. or implied by any forward-looking statements or information contained in this press release. The risks, uncertainties and other factors involved in forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including but not limited to limit, the funding and liquidity risks, and the risks disclosed in the circular, the management information circular of Acreage dated May 17, 2019 filed on May 23, 2019, the annual report of Acreage on form 10- K for the fiscal year ended December 31, 2019 dated May 29, 2020 and its modification on Form 10-K / A dated August 14, 2020, and other Acreage public documents, in each case filed with the SEC on EDGAR’s website at www.sec.gov and from Canadian securities regulators and available on Acreage’s issuer profile on SEDAR at www.sedar .com. Although Acreage has attempted to identify significant factors that could cause actual results to differ materially from those contained in forward-looking information, other factors may cause results not to be as anticipated, estimated or planned. In addition to this, you need to know more about it.
Although Acreage believes that the assumptions and factors used in the preparation of forward-looking information or forward-looking statements in this press release are reasonable, such information should not be relied upon and no assurance can be given that such events will occur within the disclosed time frame or not at all. Forward-looking information and forward-looking statements included in this press release are made as of the date of this press release and Acreage assumes no obligation to publicly update such forward-looking information or forward-looking information to reflect new information, events. subsequent or otherwise, unless required by applicable securities laws.
Neither the Canadian Securities Exchange nor its regulatory services provider has reviewed and accepts no responsibility for the adequacy or accuracy of the contents of this press release.