Acreage Holdings, one of the largest vertically integrated cannabis companies in the U.S., announced its plans to go public, entering into a reverse takeover with Applied Inventions Management.
As part of the deal, announced Friday, all of the existing security holders of both companies will swap their economic interests for new stock. Applied will cut its existing Class B shares on the basis of one and one half and its existing Class A shares will be swapped on a one-for-one basis.
In addition, the Class A shares will be renamed “Class A Subordinate Voting Shares” and given certain rights and restrictions. The Class B shares will also have certain rights and restrictions when they are swapped.
A new voting class of stock, the “Class C Subordinate Voting Shares,” will be created pursuant to the deal closing.
Any holders of Acreage’s existing convertible debt will convert into debt of the new company, which will be known as Acreage Holdings. The combined company will have a new board of directors and “all outstanding Acreage Holdings warrants will be amended for warrants of the Resulting Issuer.”
Headquartered in New York Acreage has licenses in several states, where cannabis is legal. It also “owns or operates cultivation, processing and dispensary operations and has one of the largest footprints of any cannabis company in the U.S.”
After the deal closes, Kevin Murphy, who is CEO of Acreage Holdings and is expected to be the CEO of the new company, will “own all of the outstanding Class C Multiple Voting Share of Acreage Holdings, Inc., which is anticipated to represent up to approximately 86.2% of the total votes ascribed to all of the Resulting Issuer’s outstanding shares.”
In addition to Murphy being its CEO, George Allen will be the company’s Chairman of the Board and Glen Leibowitz will be its CFO. On the company’s board of directors will be former Speaker of the House John Boehner and former Massachusetts Governor, Bill Weld.