In a continued effort to increase vertical integration and speed up the packaging and delivery processes, Acreage Holdings, Inc. (CSE: ACRG.U; FSE: 0VZ) just closed the acquisition of a Portland-based cannabis packing company.
Under the terms of the deal, Acreage has now acquired all issued and outstanding shares of Form Factory Inc. by issuing 6.28 million subordinate voting shares at a value of $25 per share.
With the merger completed, Acreage is already utilizing Form Factory operations at an Oakland facility to package products for the existing Natural Wonders brand.
Additional cannabis brands provided through various Acreage subsidiaries or intended to sell wholesale to retailers will soon begin using Form Factory’s packaging techniques.
After the deal officially closed, Acreage issued this statement about the strategic rationale behind acquiring Form Factory:
Expanding cultivation facilities and acquiring companies at different stages of the cannabis production and distribution process have become main focal points for major licensed producers seeking to lower costs and increase supply.
While nationwide legalization is expected to become a main topic of next year’s elections in the U.S., at the moment California, Florida, and Nevada are currently seeing the bulk of those cannabis deals.
On the Nevada front, Curaleaf Holdings (CSE: CURA; OTCQX: CURLF) just made a major move towards integrating vertically in the state with a $70 million cash and stock deal to acquire Acres Cannabis.
On the California side, Acreage recently announced an all stock $11.5 million valued deal to acquire Kanna Inc. and snap up the company’s lucrative dispensary located in Oakland, where the total number of legal storefronts is currently limited.
In other Acreage news, earlier this month the company recruited Dr. Corey Burchman from Dartmouth’s Geisel School of Medicine to serve in the newly-created role of Chief Medical Officer. In that role, Burchman will seek to extend the company’s patient outreach and launch new clinical trials on medical uses for cannabis.