Acreage Holdings Inc. (CSE: ACRG.A.U, ACRG.B.U) (OTCQX: ACRHF, ACRDF) successfully grew its revenues again in the third quarter this year, but it also increased losses during that time.
The company pulled in $61.4 million in revenue for the quarter, up 28% from $48.1 million the same quarter last year. That’s thanks to a well-performing Ohio market and the launch of adult-use sales in New Jersey, the company said in a news release.
But Acreage also posted an overall net loss of $24.9 million in the third quarter, which drove its cumulative losses for 2022 to $49.5 million.
That’s up from $14 million lost in the third quarter of 2021 and $26 million the company lost in the first nine months of last year.
The increased loss comes despite the fact that Acreage sold off a four-store chain in Oregon called Cannabliss & Co., saw “continued strong growth” in New Jersey, expanded its product offerings in Illinois, and got the green light for a joint social equity venture in Connecticut.
“Despite significant industry headwinds, our results in the third quarter once again demonstrate the highly attractive positioning our operations have established in our core markets over the last year,” CEO Peter Caldini said.
“Throughout the remainder of the year we will focus our efforts on strengthening our presence in New Jersey through continued cultivation improvements and prepare for the launch of adult-use sales in key Northeastern markets,” Caldini said.
Acreage also celebrated the recent news that Canada-based Canopy Growth has formed a new U.S.-based entity with which it will complete its acquisition of Acreage, a deal originally inked in 2019. The acquisition will be completed with the use of “floating shares,” according to the release, as long as shareholders approve the deal at a January meeting.
“This agreement is a culmination of the significant work and effort our teams have put in over the last several years, and we are confident that now is the time to execute on this strategic opportunity,” Caldini said.