Acreage exits Oregon by selling cannabis stores for $6.5 million

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Marijuana multistate operator Acreage Holdings agreed to sell four Oregon retail stores for $6.5 million, a transaction that completes the sale of the MSO’s facilities in the state as it continues to focus on core markets.

The buyer is Portland-based Chalice Brands, which will increase its retail footprint from 12 to 16 stores in Oregon.

In a news release, New York-based Acreage noted its Oregon operations had been “negatively affecting the company’s bottom line and utilizing management resources.”

The terms of the sale agreement include a $250,000 cash payment at the time of the signing, and a 10-month, $6.25 million promissory note bearing an annual interest of 6% for the first five months and 10% for the remaining five months.

The stores are in Portland, Eugene and Springfield, and branded under Cannabliss.

“This is a fantastic opportunity for Chalice to edge closer to our goal of achieving our targeted market share in the state of Oregon while entering the Eugene market … ,” Jeff Yapp, CEO of Portland-based Chalice, said in a news release.

Earlier this year, Acreage sold its vertical marijuana operation in Florida for $60 million and last year it sold its North Dakota medical marijuana assets and land in Massachusetts as part of a cost-cutting move.

“The sale of our Oregon operations represents another strategic step in our previously announced operating strategy,” Acreage CEO Peter Caldini said in the news release.

That strategy involves “driving profitability, strengthening our balance sheet, and accelerating our growth in our core markets.”

Acreage currently lists operations or management service contracts in 12 states, with core markets including Illinois, Massachusetts, Michigan, New York, New Jersey and Pennsylvania.

The company posted a net loss of $3.3 million in the second quarter of 2021 on revenues of $44.2 million.

Acreage trades on the Canadian Securities Exchange as ACRG.U and on the U.S. over-the-counter market as ACRGF.