In a continued work to improve vertical integration and speed up the packaging and delivery processes, Acreage Holdings, Inc. (CSE: ACRG.U FSE: 0VZ) just closed the acquisition of a Portland-primarily based cannabis packing organization.
Beneath the terms of the deal, Acreage has now acquired all issued and outstanding shares of Form Factory Inc. by issuing 6.28 million subordinate voting shares at a worth of $25 per share.
With the merger completed, Acreage is currently using Kind Factory operations at an Oakland facility to package solutions for the current Organic Wonders brand.
Extra cannabis brands offered via a variety of Acreage subsidiaries or intended to sell wholesale to retailers will quickly start making use of Kind Factory’s packaging methods.
Just after the deal officially closed, Acreage issued this statement about the strategic rationale behind acquiring Kind Factory:
[The transaction] sets the stage for Acreage to develop into the initially national cannabis Customer Packaged Goods (CPG) organization, capable of distributing predictable and scalable proprietary brands nationally, delivering these capabilities on a contract basis to other cannabis brands, and providing a turnkey answer to standard non- cannabis CPG corporations such as Nestle, Mars or Procter & Gamble.
Expanding cultivation facilities and acquiring corporations at diverse stages of the cannabis production and distribution approach have become major focal points for important licensed producers looking for to reduce fees and improve provide.
Although nationwide legalization is anticipated to develop into a major subject of subsequent year’s elections in the US, at the moment California, Florida, and Nevada are at present seeing the bulk of these cannabis offers.
On the Nevada front, Curaleaf Holdings (CSE: CURA OTCQX: CURLF) just created a important move towards integrating vertically in the state with a $70 million money and stock deal to acquire Acres Cannabis.
On the California side, Acreage not too long ago announced an all stock $11.five million valued deal to obtain Kanna Inc. and snap up the company’s profitable dispensary situated in Oakland, exactly where the total quantity of legal storefronts is at present restricted.
In other Acreage news, earlier this month the organization recruited Dr. Corey Burchman from Dartmouth’s Geisel College of Medicine to serve in the newly-developed part of Chief Health-related Officer. In that part, Burchman will seek to extend the company’s patient outreach and launch new clinical trials on healthcare utilizes for cannabis.