New York-based High Street Capital has changed its name to Acreage Holdings and has pivoted from passive cannabis investing to a company that actively owns and manages medical marijuana facilities. The company plans on pursuing an initial public offering.
It’s one of the few multi-state cannabis companies that many have never heard of. It was founded in 2014 by Kevin Murphy and was one of the first platforms to invest systematically in the cannabis space.
Over the past four years, Acreage Holdings has won state-awarded licenses, recruited operators and provided growth capital to local businesses across 11 different states. Murphy recognized the massive opportunity and scale offered by the creation of a cohesive multi-state platform and late last year the company voted to aggressively pursue a strategic roll-up of its portfolio assets.
“The traditional benefits of scale for any business are dramatically amplified in the nascent world of cannabis,” said Kevin Murphy, CEO. “The difference between ‘good’ and ‘excellent’ execution is unusually large and we plan to take advantage of that by creating a template for excellence and delivering it systematically.” Acreage has nearly completed execution of its plan to fully control and manage the operations of all its assets across the country.
The operations of Acreage Holdings include three of the fundamental components of the cannabis value chain: cultivation, processing, and retail dispensaries. “Our goal is to be vertically integrated in all of the states in which we operate,” added Mr. Murphy. “That way we can ensure that the highest quality product gets delivered in a timely, efficient and reliable way for thousands of patients and customers across the country.”
Within the 11 states that Acreage Holdings currently operates, cannabis is expected to represent $9 Billion of retail revenue by 2020. Acreage Holdings is keenly focused on expanding its footprint and continuing acquisitions, with aspirations to become the dominant national platform in the space. The company recently attended the ICR Conference in January in a heavily attended presentation.