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Acreage Holdings, Inc. (CSE: ACRG.A.U, ACRG.B.U) (OTCQX: ACRHF, ACRDF), a vertically integrated, multi-state operator of cannabis cultivation and retailing facilities in the U.S., and a constituent in the munKNEE Pure-Play American Cannabis MSO Index, reported its financial results for the second quarter (Q2) ended June 30, 2022 today.
 

Q2 Financial Highlights

 (All figures are in US dollars and compared to the previous quarter)

• Revenue: increased 7.9% to $61.4M
• Gross Margin: declined from 52% to 50%
• Operating Expenses: declined 15.3% to $27.3M
• Net Loss: declined 23.7% to $(10.6)M
• Adj. EBITDA: increased 20.9% to $10.4M
  • as % of Revenue: increased to 16.9% from 15.1%
     

Q2 Operational Highlights

• Commenced adult-use operations in New Jersey, with a variety of products.
• Completed the first phase of expansion on the Company’s cultivation facility in Syracuse, New York, positioning Acreage to further support wholesale demand in the existing medical market in addition to preparing for the impending launch of adult-use sales.
• Completed the sale of the Company’s cultivation and processing facility in Medford, Oregon, for total consideration of $2.0 million.
• Closed its dispensary in Powell, Oregon.
• Converted its dispensary in Brewer, Maine, to adult use.
   

Management Commentary

Peter Caldini, CEO, said:

• “...[T]he additional contributions from New Jersey, as well as our recently acquired operations in Ohio...has led to our sixth consecutive quarter of positive Adjusted EBITDA. This track record of success continues to demonstrate the strong impact our disciplined strategy has had on both our financial and operating performance.

• With the conclusion of our operations in Oregon following the end of the quarter, we are in a more favorable position to drive development in our core markets, where we see the best opportunity to foster long-term growth and enhance shareholder value. During the latter half of the year, we will continue our preparation for pending adult-use sales in these developing Northeastern markets, such as New York and Connecticut, in addition to strengthening our presence in New Jersey.”

Stock Performance

Despite the impressive financial and operational advances in Q2 the combined price of Acreage's two stocks (ACRDF/ACRHF) has declined to its 52-week low and is now down 42.5% YTD.

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