Multistate marijuana operator Acreage Holdings said it has closed on a deal to acquire a New Jersey medical cannabis operation for $10 million, plus the assumption of debt.
The acquisition, announced last year, gives Acreage a firm foothold in a marijuana market positioned for potential adult-use legalization. New Jersey residents will vote on an adult-use initiative in November.
Acreage’s acquisition of Compassionate Care Foundation includes licenses for cultivation, processing and three dispensaries.
The closing of the New Jersey deal comes just a few days after Canadian cannabis producer Canopy Growth reached an agreement to amend its acquisition of Acreage and slash the values of the deal from $3.4 billion to about $900 million. The price cut reflects the cannabis stock slide and Acreage’s financial condition.
Reflecting a cash-strapped status, New York-based Acreage recently secured a short-term loan for $15 million with an interest rate of 60%.
Acreage’s revenues in the first quarter of this year totaled $24.2 million, up 15% from the previous quarter, but the company has yet to break even on its operations.