New York-based cannabis company Acreage Holdings Inc. has temporarily furloughed 122 employees, terminated its acquisition of Nevada-based Deep Roots Medical LLC, and announced other cost-cutting measures in response to the coronavirus pandemic.
The company noted that the COVID-19 pandemic and other uncontrollable factors that have greatly shifted the cannabis landscape.
Acreage Holdings said it has temporarily furloughed 122 employees across both the corporate office and field operations teams.
In addition, the company temporarily closed certain operations, including one dispensary in each of Maryland and North Dakota; wholesale operations in Iowa, and Form Factory operations in California, Oregon, and Washington. The company has also converted its dispensary in Queens, New York, to a delivery hub.
Further, Acreage Holdings has terminated the securities purchase agreement among Greenleaf Compassionate Care Center, Inc., GCCC Management, LLC, the equity holders of GCCCM and High Street Capital Partners, LLC relating to the proposed acquisition of a dispensary in Rhode Island.
The company has also terminated its proposed acquisition of Deep Roots Medical, LLC, previously announced in April 2019, due to the ongoing moratorium imposed by the Nevada Department of Taxation.
Acreage Holdings noted that the delay prevented the companies from obtaining the consents, approvals and authorizations required to consummate the merger prior to the outside date provided in the merger agreement.
In addition, Acreage said that its Executive Vice President, Chief People Officer and Administration, Steve Hardardt, has resigned from the company with immediate effect.
The company has also suspended its financial outlook for fiscal 2020 and will provide a detailed update on its first-quarter earnings call tentatively scheduled for May 13, 2020.
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