NEW YORK, Aug. 12, 2019 (GLOBE NEWSWIRE) — Acreage Holdings, Inc. ("Acreage") (CSE: ACRG.U) (OTCQX: ACRGF) (FSE: OZV) today announced the launch of new cannabis consumer products in select markets as part of its "House of Brands" strategy – a portfolio of unique brands that address different consumer segments and form factors. The launch includes products from three new Acreage-developed brands: The Botanist, Natural Wonder, and Live Resin Project.
The Botanist, a wellness brand devoted to unlocking the benefits of the full cannabis plant, expects to launch in Iowa this month with its first product, a line of high-CBD tinctures for the Iowa's medical market. Natural Wonder, developed by Acreage's Form Factory division, is a convenient and discreet, microdose sublingual breath spray, available on select dispensary shelves in Oregon. Live Resin Project is expected to launch in California later this month, bringing to market new live resin products in a variety of raw concentrates and easy-to-use vape cartridges. Live resin, an innovative extraction method that utilizes flash-frozen whole cannabis plants, was invented by the legendary cannabis extractor and Acreage "Green Team" member William "Kind Bill" Fenger.
Acreage expects to continue rolling out The Botanist, Natural Wonder, and Live Resin Project products to additional markets and across more form factors through the rest of the year.
Kevin Murphy, Chairman and CEO of Acreage, said, "The rollout of The Botanist, Natural Wonder, and Live Resin Project is a crucial step for Acreage. Establishing a 'House of Brands' has always been at the forefront of our strategy to deliver long-term shareholder value, and launching these products is a significant milestone for us. We look forward to rolling out our product lines across our national footprint over the rest of the year."
Headquartered in New York City, Acreage is one of the largest vertically integrated, multi-state operators of cannabis licenses and assets in the U.S., according to publicly available information. Acreage owns licenses to operate or has management or consulting services or other agreements in place with license holders to assist in operations in 20 states (including pending acquisitions) with a population of approximately 180 million Americans, and an estimated 2022 total addressable market of $16.7 billion in legal cannabis sales, according to Arcview Market Research. Acreage is dedicated to building and scaling operations to create a seamless, consumer-focused branded cannabis experience. Acreage's national retail store brand, The Botanist, debuted in 2018.
On June 27, 2019 Acreage implemented an arrangement under section 288 of the Business Corporations Act (British Columbia) (the "Arrangement") with Canopy Growth Corporation ("Canopy Growth"). Pursuant to the Arrangement, the Acreage articles were amended to provide Canopy Growth with an option to acquire all of the issued and outstanding shares in the capital of Acreage, with a requirement to do so, upon a change 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 from the federal laws of the United States (the "Triggering Event"), subject to the satisfaction of the conditions set out in the arrangement agreement entered into between Acreage and Canopy Growth on April 18, 2019, as amended on May 15, 2019 (the "Arrangement Agreement"). Acreage will continue to operate as a stand-alone entity and to conduct its business independently, subject to compliance with certain covenants contained in the Arrangement Agreement. Upon the occurrence or waiver of the Triggering Event, Canopy Growth will exercise the option and, subject to the satisfaction or waiver of certain conditions to closing set out in the Arrangement Agreement, acquire (the "Acquisition") each of the Subordinate Voting Shares (following the automatic conversion of the Class B proportionate voting shares and Class C multiple voting shares of Acreage into Subordinate Voting Shares) in exchange for the payment of 0.5818 of a common share of Canopy Growth per Subordinate Voting Share (subject to adjustment in accordance with the terms of the Arrangement Agreement). If the Acquisition is completed, Canopy Growth will acquire all of the Acreage Shares, Acreage will become a wholly owned subsidiary of Canopy Growth and Canopy Growth will continue the operations of Canopy Growth and Acreage on a combined basis.