Acreage Holdings, Inc. (OTC: ACRGF) said in its first-quarter report Tuesday that its revenue grew substantially despite regulatory delays in the opening of dispensaries.
What Happened
Total revenue for the first quarter of 2019 totaled $12.9 million, marking a 487-percent jump from the same period last year. Acreage reported pro forma revenue of $33.1 million and a net loss of $31.2 million.
The company said it remained active in expanding its brand across the U.S. through store openings as well as mergers and acquisitions.
This includes opening six Botanist dispensaries in New York, North Dakota and Ohio, in addition to acquiring a Nevada dispensary on a pro forma basis.
In all, the cannabis company said it deployed over $100 million in capital through M&A activity during the first quarter.
What’s Next
Acreage's revenue growth came despite delays in dispensary openings that were caused by Massachusetts and Ohio regulators, CEO Kevin Murphy said in a statement.
"We do not expect these delays to impact our long-term ability to generate industry-leading returns."
View more earnings on ACRGF
Acreage expects the agreement it made to be acquired by Canopy Growth Corp (NYSE: CGC) will allow the company to accelerate its growth plan, Murphy said.
In addition to the deal with Canopy, other projected second-quarter activity includes the closing of its acquisition of Form Factory and Deep Roots Medical LLC.
Acreage Holdings shares were down 3.8 percent at $18.48 at the time of publication Wednesday.
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