Benzinga | Sep 16, 2021 10:55AM EDT

Acreage Holdings Exits Oregon, Divests Retail Chain Cannabliss & Co

Cannabis company Acreage Holdings, Inc. (CSE:ACRG) (OTCQX:ACRDF) has sold its Oregon-based retail dispensaries branded as Cannabliss & Co to Chalice Brands Ltd. (CSE:CHAL) (OTCQB:CHALF).

Under the terms of the asset purchase agreement, the New York-based company agreed to divest its stores located in Portland, Eugene and Springfield for $6.5 million.

The price tag includes a $250,000 cash payment at the time of signing and a ten-month secured promissory note for the $6.25 million bearing interest of 6% for the first five months and 10% for the remaining five months.

Pursuant to the services agreement, Acreage will transition the management of the Cannabliss retail operations to Chalice Brands immediately upon signing.

"The sale of our Oregon operations represents another strategic step in our previously announced operating strategy," Peter Caldini, CEO of Acreage Holdings said. "As we previously communicated, Acreage remains focused on our three key strategic objectives -- driving profitability, strengthening our balance sheet, and accelerating our growth in our core markets."

Acreage said that with the sale of the Cannabliss retail operations, it is leaving Oregon, which was negatively affecting its bottom line and utilizing management resources.

Price Action

Acreage's shares traded 0.50% lower at $2.02 per share at the time of writing Thursday morning.

Photo: Courtesy of Maxim Hopman on Unsplash