Acreage Holdings Writes Off $196 Million In First Quarter
Acreage Holdings (CSE: ACRG.u) reported its first quarter revenues this evening via press release, reporting revenues of $24.2 million, an increase of 15% on a quarter over quarter basis. Net loss attributable to Acreage for the quarter came in at an outstanding $172 million.
Losses were pushed high due to non-cash pre-tax charges of $196.0 million as a result of the company refocusing operations within certain states. Notably, this is nearly double the estimate provided by the company last month of $80 to $100 million in non-cash charges as a result of the company failing to understand current fair market values of its assets in certain states.
While top line revenue numbers were reported, including “pro-forma” revenues of $37.6 million due to “managed revenue,” other financial details provided by the company were slim, with the company having yet to file full financial statements. The news release primarily focused on the mental gymnastics required to change the firms net loss of $171.9 million to a an “adjusted net income” of $14.7 million, including adjusting for the following:
- Loss on impairment of intangible assets of $148.1 million
- Loss on notes receivable of $6.4 million
- Equity based compensation of $27.4 million
- Other non-recurring expenses of $5.0 million
Full analysis of Acreage’s financials will be reported on once financial statements are filed.
Acreage Holdings last traded at US$2.90 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.
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