Acreage Holdings Invests $160 Million In Multi-State Distributor Form Factory

//Acreage Holdings Invests $160 Million In Multi-State Distributor Form Factory

Acreage Holdings Invests $160 Million In Multi-State Distributor Form Factory

As companies throughout the cannabis industry are seeking ways to create consistent and scalable cannabis products, Acreage Holdings Inc. (CSE: ACRG.U) is positioning itself to become the United States’ first national cannabis Consumer Packaged Goods (CPG) company. On December 6, 2018, the company announced that it has signed a definitive agreement to acquire Form Factory, a multi-state distributor and manufacturer of cannabis beverages and edible products, in an all-stock transaction valued at $160 million.

“Creating a wide range of products that meet the diversified tastes of consumers and owning the national manufacturing and distribution platform to ensure their consistent and predictable delivery on a national basis is a key to long-term success and value creation in the cannabis industry,” said Kevin Murphy, Founder, Chairman, and CEO of Acreage Holdings. “With this acquisition, we are now positioned to be both the first and only national cannabis CPG company and distribution platform in the U.S. cannabis industry.  The combination of the largest U.S. operational footprint, combined with the unique food and beverage manufacturing capabilities of Form Factory sets us on a direct path to becoming the Procter & Gamble of cannabis.”

Under the agreement, Acreage will issue 6.4 million Subordinate Voting Shares to Form Factory shareholders at a price of $25 per share. The company will acquire Form Factory’s grow/processor license and operations in the cities of Los Angeles, California; Oakland, California; and Portland, Oregon. Acreage will also acquire the management services contracts for Form Factory’s contract manufacturing business, as well as all of the company’s intellectual property.

With this acquisition, Acreage hopes to consistently manufacture and distribute branded cannabis products throughout the company’s 19 U.S. state footprint at a scalable level. In addition to cannabis products, Acreage plans on serving traditional, non-cannabis CPG companies. Although a specific date has not been set, the acquisition is expected to close within the first quarter of 2019.

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By | 2018-12-06T18:57:15+00:00 December 6th, 2018|Business|0 Comments