Acreage Reports Second Quarter 2024 Financial Results

Acreage Holdings, Inc. (OTCQX:ACRHF, ACRDF) reported its financial results for the second quarter ended June 30, 2024. The company, a vertically integrated operator of cannabis cultivation and retailing facilities in the U.S., achieved consolidated revenue of $39.0 million in Q2 2024, compared to $58.1 million in Q2 2023. Gross margin was 43%, and net loss amounted to $24.1 million. Adjusted EBITDA was $1.9 million, or 5% of consolidated revenue.

Management noted credit challenges and the need to preserve cash as key constraints, impacting Q2 performance. Acreage secured $10 million from a private placement for working capital and streamlined its credit facility with new lenders. Notably, the company initiated inventory restocking in New Jersey, Illinois, and Connecticut, expecting revenue growth from these states in the latter half of 2024.

In a significant development, Acreage started non-medical sales in Ohio on August 6, 2024, at The Botanist locations, marking a milestone in the company’s expansion. Acreage's strategy includes launching new products such as Superflux Live Resin Gummies in Illinois and vapes in New York and New Jersey. Moreover, Acreage received approval to relocate its Atlantic City dispensary to Collingswood, NJ, and a permit for new medical dispensaries in Pennsylvania.

The prospective acquisition by Canopy USA is advancing, with an expected close in the first half of 2025. CEO Dennis Curran expressed optimism for improved commercial activity and integration with Canopy USA’s ecosystem to drive profitability.