As the Canadian cannabis industry continues to struggle towards profitability following legalization last year, larger licensed producers are employing a variety of methods to keep skittish investors on board.
While Canopy Growth just ousted CEO Bruce Linton earlier this month with plans to institute new leadership, other companies are trying everything from late-season outdoor grow operations to insider stock purchases.
Acreage Holdings, Inc. (CSE: ACRG.U; OTCQX: ACRGF; FSE: 0ZV) today went that latter route, as Chief Executive Officer and Board Chairman Kevin Murphy executed an open market stock purchase of 154,000 shares.
That purchase through the OTCQX market was valued at just north of $2,000,000 (US). Discussing the large stock buy this morning, Murphy had this to say:
Acreage and Canopy shareholders recently approved a landmark international acquisition deal that hinges on cannabis being removed from its current place as a Schedule I drug in the United States.
When cannabis is effectively legalized at a federal level, the deal will see Canadian-based Canopy acquiring Acreage Holdings. Recreational cannabis has only been legalized in 11 U.S. states so far, although the issue is expected to arrive on the ballot in several other states next year.
Canopy’s own financial issues are now having an effect on Acreage despite the acquisition not having closed yet.
Canopy famously received a $5 billion investment from Constellation Brands (NYSE: STZ) last year, which seems to have played a large role in the decision to oust CEO Linton and seek new executive management to increase the company’s profitability.
Although it has seen a slight uptick this morning, the Acreage Holdings stock has been down sharply in the last six months, dropping from a high of $24.13 to a price of $13.72 as of Monday afternoon.
In other recent company news, Acreage recruited former LensCrafters and Nationwide Vision executive Rhonda Kratz to serve as General Manager for Florida operations last week. The company also just parted ways with Chief Marketing Officer Harris Damashek and is currently seeking a new CMO to fill the position.