Eyeing Profitability, Acreage Holdings Continues to Scale Back – THCnet

Acreage Holdings, Inc. is continuing to trim back its operations.

On Monday, the New York-based multistate operator announced the sale of additional non-core assets in South Dakota and Massachusetts as it seeks profitability.

In a press release, Acreage said it had divested undeveloped real estate on the island of Nantucket, in Massachusetts, and sold a medical marijuana dispensary in North Dakota.

The North Dakota location — which previously operated under Acreage’s “Botanist” banner — reopened today as Pure Dakota Health, according to the state’s Division of Medical Marijuana.

“With the transfer of ownership, all eight dispensaries across the state will be operational again,” North Dakota Division of Medical Marijuana director Jason Wahl said via a release.

A purchase price was not disclosed.

Acreage shuttered the North Dakota Botanist dispensary in early April, at the time characterizing the closure as temporary. Simultaneously, the company furloughed 122 employees, and closed operations in Maryland, Iowa, California, Oregon and Washington.

It also canceled a $120 million deal to acquire Nevada’s Deep Roots Medical, LLC, and terminated an agreement to purchase a medical marijuana dispensary in Rhode Island.

The company’s continued retrenchment efforts are intended to help it become EBITDA-positive this year, something other major cannabis firms are also working toward.

And like other large cannabis companies that have introduced revitalization plans – including Aurora Cannabis, Canopy Growth, and Cresco Labs, among others — Acreage believes that focusing on “key, profitable operations” will “lead to immediate margin improvement.”

In its release, Acrease said the “strategic shift” stemmed from “significant changes in capital markets” and was intended to help the company weather what it described as forthcoming “historic pressure on consumer sentiment and regional and national economic uncertainties.”

“The impact of the COVID-19 pandemic on U.S. cannabis operators has been profound, at a time when the

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