Acreage Holdings Inc. (CSE: ACRG.A.U, ACRG.B.U) (OTCQX: ACRHF, ACRDF) hemorrhaged more money in the second quarter this year with a $18.2 million loss, bringing total losses for the year so far to $34.3 million.
By contrast, Acreage lost $10.6 in the same quarter last year, and lost $168.7 million for all of 2022.
Acreage reported $58.1 million in revenue for the quarter, up 3.8% sequentially from Q1 but down from $61.3 million a year prior. The company attributed the shift to its divestiture from assets in the saturated Oregon cannabis market as well as “market price compression across various markets.”
The year-over-year revenue dip, however, was partially offset by recreational marijuana sales in both New Jersey and Connecticut, Acreage reported.
The company reported it took a new $15 million loan in April for capital expenditures.
Acreage finished the quarter with $16.4 million in cash and another $13.6 million in “restricted cash” – eligible only for capital expenditures – against $94.2 million in current liabilities and $356.9 million in total liabilities.
“I am pleased with the progress we made in the second quarter on our continued efforts to drive meaningful revenue growth and achieve operational savings to deliver cash flow improvements for the business,” CEO Dennis Curran, who took the reins last month after a C-suite shuffle, said in a statement.
“Across our footprint, we have continued to implement optimization initiatives to further drive operational excellence and strongly position each market to achieve sustained growth,” Curran said. “This includes strengthening our inventory management, cost analysis, and production planning, which we believe will enable us to unlock higher margins.”
The newly minted CEO pointed to Acreage’s footprint in New Jersey and Connecticut as nascent recreational marijuana markets that should prove fruitful in coming months. Year-over-year quarterly revenue in New Jersey popped 35% and in Connecticut 31%, Acreage reported.
Other highlights from the quarter included:
- A reduction in the number of directors and the resignation of Chairman Kevin Murphy in order to “right-size” the corporate governance structure in advance of a megamerger with Canadian LP Canopy Growth Corp.
- Infrastructure development at Acreage’s facility in Egg Harbor, New Jersey, to support more biomass production.
- Successful lobbied for state-level 280E tax offset reforms in Connecticut, Maine, and Ohio.
- Launch of new product lines in Illinois, Maine, Massachusetts, and Ohio.