Acreage sees cannabis trade grow in the northeast
Acreage Holdings Inc. plans to leverage its presence in the medical cannabis market as adult-use sales open up in New York, New Jersey and Connecticut, the company’s chief financial officer said.
Adult-use sales at select stores opened in New Jersey on April 21, as a “big driver” of growth in 2022, and New York and Connecticut are also preparing their markets, Chief Financial Officer Steve Goertz said.
“The dominoes stack up really well for us in the Northeast,” Goertz said.
Like other cannabis stocks, Acreage’s stock price remains in the red for 2022 amid weak prospects for US federal legalization in Congress in the near future.
Acreage ACRHF OTC Listed Shares,
are down 49.3% in 2022, compared to a 47% decline for the MSOS AdvisorShares Pure US Cannabis ETF,
“There was a big spike in cannabis stock prices starting in 2021 after the election, when people thought there was going to be federal reform right away,” Goertz said. “That outlook goes up and down, but right now the sentiment is negative.”
Many major brokerages and fund managers in the United States do not allow investors to buy shares of a domestic herbal company, as cannabis remains illegal under federal law.
“A lot of retail investors entered the space expecting big profits, but valuations have crashed and they’ve suffered losses and there’s fatigue,” Goertz said. “Until there is momentum for change in Washington, it will be a difficult environment” for stocks.
Read also : Stifel cuts cannabis industry view as analysts weigh in on Tilray
Acreage’s first-quarter results released Thursday showed the company’s revenue jumped 50% on the back of acquisitions in California, Ohio and Maine.
The company ended the quarter with 1,100 employees and $32 million in cash.
Acreage’s net loss widened to $14 million, or 12 cents per share, from $8.6 million, or 8 cents per share in the year-ago quarter.
Revenues increased from $38.4 million to $56.9 million.
Area is below analysts’ estimates for a loss of 5 cents per share with revenue of $57.5 million.
Read also : Green Thumb Industries CEO eyes cash flow in the vein of Warren Buffett