Acreage Holdings (CSE: ACRG.A.u) has sold its Florida operations. The company this morning announced in a brief release that its Florida operations have been sold to that of Red White & Bloom (CSE: RWB).
Under the terms of the agreement, Red White & Bloom has acquired the operations for a total price tag of $60.0 million, which includes the sale of the firms property in Sanderson, Florida. The sale is reportedly a result of the company focusing on its “core markets” in nine states across the Northeast, Mid-Atlantic and Midwest, hinting that divestures within four additional states are still to come.
The make-up of the transaction is to consist of an up-front payment of $5.0 million in cash upon the execution of the definitive agreement. Following this, an additional cash payment of $20.0 million is to be made upon closing, along with the issuance by Red White & Bloom of $7.0 million in common stock and a $28.0 million promissory note.
The transaction is slated to close in Q2 2021.
Acreage Holdings last traded at US$7.40 on the CSE.
Information for this briefing was found via Sedar and Acreage Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
