Acreage sees cannabis business sprouting in the Northeast

Acreage Holdings Inc. plans to take advantage of its presence in the medical cannabis market as adult sales open in New York, New Jersey and Connecticut, the company’s chief financial officer said.

Adult use sales at select stores opened in New Jersey on April 21 as a “big engine” for growth in 2022, in addition to New York and Connecticut are also preparing their markets, he said. say Chief Financial Officer Steve Goertz.

“Dominoes pile up really well for us in the Northeast,” Goertz said.

Like other cannabis actions, the price of Acreage shares remains in the red for 2022 amid the dire prospects of U.S. federal legalization in Congress in the near future.

Acreage ACRHF OTC Shares,
have dropped 49.3% in 2022, compared to a 47% drop in AdvisorShares Pure US Cannabis MSOS ETFs.

“There was a huge increase in cannabis stock prices starting in 2021 after the election, when people thought there would be federal reform immediately,” Goertz said. “These prospects are rising and falling, but right now the sentiment is negative.”

Many large brokers and fund managers in the U.S. will not allow investors to buy shares of a domestic plant-affected business because cannabis remains illegal under federal law.

“Many retail investors entered the space expecting big profits, but valuations have collapsed and they have suffered losses and there is fatigue,” Goertz said. “Until there is a push for change in Washington, it will be a difficult environment” for action.

Also read: Stifel trims his view of the cannabis industry as analysts weigh in on Tilray

Acreage’s first-quarter results released Thursday showed the company’s revenue rose 50% with boosting acquisitions in California, Ohio and Maine.

The company closed the quarter with 1,100 employees and $ 32 million in cash.

Acreage’s net loss extended to $ 14 million, or 12 cents per share, from $ 8.6 million, or 8 cents per share in the quarter last year.

Revenue rose to $ 56.9 million from $ 38.4 million.

The area did not reach analysts’ estimates for a loss of 5 cents per share with revenue of $ 57.5 million.

Also read: The CEO of Green Thumb Industries looks at the cash flow in the Warren Buffett line

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