Acreage Holdings Unveils Plans to Go Public, Complete Reverse Takeover

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.

Jack Smith

Jack Smith

Jack Smith is a tech reporter that dabbles in cannabis reporting to help out his good friends at GMR.


16 comments

  • Brian L. Hearne

    September 24, 2018 at 9:39 pm

    please advise me how / when / where that I can buy shares of the new company ?

    Will the new company have a new name ? symbol ?

    I am would like to invest $30,000. into Acreage Holdings – how do I participate in the Complete Reverse Takeover ?

    I want to own my piece of Acreage Holdings !

    Thanks,
    Brian L. Hearne
    812-320-2885

    Reply

    • Debra Borchardt
      Debra Borchardt

      September 25, 2018 at 8:19 am

      Brian,
      You will have to wait until the shares begin trading. You’ll need a brokerage account that will allow you to buy shares in a Canadian company. There will be more details about the transaction once it is finalized. The company will be named Acreage Holdings, but I don’t believe the symbol is confirmed.
      Debra

      Reply

      • KGP1

        September 30, 2018 at 12:19 am

        Understood. What is the best and fastest source to read and/or subscribe to in order to find out when IPOs are scheduled (date to go public)? Acreage Holdings is at the top of my list along with finding out which cannabis companies Altria, Diageo and Coca Cola with invest into for beverages etc

        Reply

      • Tom

        October 24, 2018 at 8:22 am

        can you invest into the company before it goes to a IPO like you can a lot of other companies do?

        Reply

        • Debra Borchardt
          Debra Borchardt

          October 24, 2018 at 9:20 am

          Only through the private equity channels. Acreage was able to raise its money without even using a banker through the company’s personal contacts.

          Reply

        • Ioannis Kapnisis

          November 15, 2018 at 9:41 am

          Aeon Fund and I could help you out with those types of investments. Please contact me if you like more information at ikapnisis@aeonfund.com

          Reply

  • Marvin Wright

    September 27, 2018 at 9:35 am

    Anyone know how these RTO’s in the cannabis space are performing?

    Reply

  • KGP1

    September 30, 2018 at 12:23 am

    Bill Weld……..not Bill Wild lol

    Reply

  • JAMES Lewis POLLINS

    October 28, 2018 at 3:12 pm

    Will Acreage Holding go public before the end of 2018 ?

    Reply

    • Debra Borchardt
      Debra Borchardt

      November 8, 2018 at 9:29 pm

      It was expected for next week, but the date seems to be moving.

      Reply

  • David

    November 9, 2018 at 1:22 am

    Where could we find the most up-to-date information about the stock symbol and starting trade date? It looks like even the company’s own web site does not have the information.

    Reply

    • Debra Borchardt
      Debra Borchardt

      November 9, 2018 at 11:41 am

      It is a fluid situation. They are supposed to begin trading next week, but the date has been changed. That is all I know.

      Reply

      • Curtis Keeter

        November 14, 2018 at 10:56 am

        Any news on date for ipo i heard maybe tomorrow 11/15

        Reply

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