Green Market Report: Acreage Holdings, Inc. (CSE: ACRG.U) (OTCQX: ACRGF) has hit the reset button as the company lays off 122 employees and kills the Deep Roots among other measures. The company blamed the COVID19 virus and other “uncontrollable factors.”
The company also said it was suspending its previous 2020 financial targets and will provide a more detailed update on its first-quarter earnings call tentatively scheduled for May 13, 2020.
“Although we are facing difficult times, I remain optimistic about the U.S. cannabis industry and Acreage in particular,” said Acreage Chair and Chief Executive Officer, Kevin Murphy.
Cue the music. Another one bites the dust. The bigger these cannabis “corporations” are, the harder they fall. Build on toothpicks and without any real brand value, the bubble continues to burst.
Coronavirus simply accelerated these bubbles to bursting mode. In addition to the layoffs, Acreage closed operations in six states.
In layman term’s: Acreage has a ton of assets but even more debt and no clue how to turn them into something. The result is the same fate that met MedMen and will meet many others: failure.
All the little, boutique growers who held out and didn’t sell out suddenly look more like geniuses than the little guy.