NEW YORK, March 13, 2019 -- PRESS RELEASE -- Acreage Holdings, Inc. announced on March 12 it entered into an agreement to acquire 100 percent of California-based Kanna, Inc., which holds a license to operate a cannabis dispensary in Oakland, Calif. This marks the first dispensary operating license for Acreage in California.
Located at 2019 MacArthur Blvd. in Oakland, the dispensary is scheduled to open in the second quarter of 2019, under Acreage's dispensary brand The Botanist. Oakland is a limited competition market allowing just 16 adult use dispensaries to serve a population of more than 400,000. Acreage will be fully integrated in a state that is estimated to generate $6.3 billion in legal cannabis sales by 2022, according to Arcview Market Research.
"I could not be more excited about our first dispensary operation in California, especially one in a limited competitive market. While this is our first, it is nowhere near our last, as we expect to significantly expand our dispensary footprint in the state over the coming months," said Kevin Murphy, founder, chairman, and chief executive officer of Acreage Holdings, Inc.
The all stock deal is valued at $11.5 million. Acreage will issue up to 460,000 Subordinate Voting Shares at a deemed value of $25 per share. The deal is expected to close in the second quarter of 2019.