Acreage Holdings Inc (OTCMKTS: ACRHF) has in a statement confirmed that the group has successfully acquired a cannabis facility in Ohio.
Information about the recent purchase
In a recent official statement, the group, which is already present in many states in the U.S., announced that it has successfully closed an acquisition deal. Through its subsidiary, High Street Capital Partners, LLC, Acreage Holdings Inc has acquired the right to cultivate, process, and perform retail operations in the 70,000 square foot facility, which is located in Ohio. A source aware of the developments shared that the group had initiated the purchase agreement in the summer of 2018.
Here’s taking a closer look at the financials involved in the deal
On the deal’s value, it is learned that according to the purchase agreement, the deal is worth close to $7.1 million in cash. Another $7.1 million in notes and 1.1 million shares of High Street Capital Partners, LLC, which can be transformed into Acreage Holdings Inc shares. Meanwhile, it has come to light that notes valued for the remaining amount of $3.3 million are paid.
The acquisition gives Acreage Holdings Inc membership rights in Greenleaf Gardens, LLC,
With the acquisition, Acreage Holdings Inc has gained membership interests of Greenleaf Gardens, LLC; The latter holds a cultivation license in Ohio. It has also come to light that Greenleaf Therapeutics, LLC, operates a permit to process in Ohio, and Greenleaf Apothecaries, LLC, on the other hand, has five retail dispensaries operational in Ohio. The recent acquisition will give Acreage Holdings Inc exclusive rights over the Greenleaf group, so much so that Acreage Holdings Inc will include the financial performance of Greenleaf in its financial statements.
Greenleaf produces a range of high-quality cannabis
The cultivation and production of Greenleaf take place at the 70,000 square foot facility, which is located in Middlefield, Ohio, and this includes another 8 acres of land, which can be used to scale up cultivation and production in the future. As part of its product portfolio, Greenleaf produces a range of high-end cannabis products, making edibles, vapes, concentrates, tinctures, capsules, and flower. The group sells its products through its wholesale channel partners and at its retail dispensaries.