New York-based Acreage Holdings on Friday announced it is furloughing 122 employees and taking other cost-cutting measures, becoming the latest multistate marijuana operator to slash costs in response to the coronavirus pandemic.
As part of its efforts, Acreage also disclosed in a news release the resignation of a top executive and announced it is:
- Scrapping a $120 million acquisition of Nevada cannabis company Deep Roots.
- Temporarily closing some facilities across several states.
- Terminating a medical marijuana dispensary acquisition in Rhode Island involving Greenleaf Compassionate Care Center.
- Suspending its previously announced 2020 financial guidance.
Acreage CEO and Chair Kevin Murphy said that, as “result of the COVID-19 pandemic, we have made the very difficult decision to furlough several of our employees and close certain facilities while we navigate through the crisis.”
In addition to furloughing employees in its corporate office and its field operations, Acreage also announced it is temporarily closing:
- Medical marijuana dispensaries in Maryland and North Dakota.
- A wholesale MMJ operation in Iowa.
- Cannabis factory operations in California, Oregon and Washington state.
In addition, the company converted a medical marijuana dispensary in Queens, New York, into a delivery hub
Acreage also announced that Steve Hardardt, the company’s executive vice president, has resigned, effective immediately.
In April 2019, Acreage was an acquisition target of once high-flying Canadian marijuana company Canopy Growth in a $3.4 billion deal. But the deal was contingent on the U.S. government legalizing the sale of marijuana.
Acreage trades on the Canadian Securities Exchange as ACRG.U and on the over-the-counter exchanges as ACRGF.
For more of Marijuana Business Daily’s ongoing coverage of the coronavirus pandemic and its effects on the cannabis industry, click here.
For analysis and in-depth looks at the investment trends and deals driving the cannabis industry forward, sign up for our premium subscription service, Investor Intelligence.