Acreage Holdings Forecast
One of the most intriguing new plays to hit the marijuana market in the near future is Acreage Holdings. The company has, without a doubt, the strongest board of directors for a marijuana company in the world, recently adding former Canadian prime minister Brian Mulroney.
Soon the company’s stock will be available to the public via an Acreage Holdings reverse takeover, so in this piece we’ll examine the Acreage Holdings forecast in preparation of its public debut.
First, however, let’s dive a little more into what Acreage Holdings is.
The marijuana company is among the largest in the U.S., operating in 15 states and with what the CEO Kevin Murphy describes as the “largest geographical footprint in the country.” (Source: “Acreage Holdings to go public in Canada,” BNN Bloomberg, August 2, 2018.)
The company is perhaps best known, however, for its very impressive board of directors.
“I am pleased that Canada has taken a leadership role in this field in North America and I’m encouraged about the prospects of what the end of prohibition today will mean for the country,” said Mulroney. (Source: “Former Prime Minister of Canada Brian Mulroney To Join Acreage Holdings’ Public Board of Directors,” Acreage Holdings, October 17, 2018.
“As Acreage continues to grow, I hope my background will prove helpful in its mission of ensuring all Americans who need it can safely and legally use cannabis.”)
Aside from adding a former Canadian prime minister, the company also nabbed former House Speaker John Boehner in April. Boehner was an especially interesting choice, given that the Republicans were typically arrayed against marijuana while he was in Congress. He has since, obviously, made an about-face by joining a marijuana company.
This impressive roster of politically connected board members is only going to help ease along Acreage Holdings’ future plans, especially as far as U.S. expansion is concerned.
The Acreage Holdings forecast is clearly and inextricably tied to the future of marijuana legalization in the U.S., which the company hopes is going to take place sooner rather than later.
Murphy said that Acreage Holdings is, “striving to be a grower, processor and distributor of cannabis in the United States.” (Source: BNN Bloomberg, op cit.)
Due to the federal restrictions on marijuana in the U.S., the company has to tackle the American market on a state-by-state basis. This is the case with many American companies operating in the marijuana industry and will continue to be that way until pot reform is passed on a federal level.
Still, the company’s early groundwork developing a strong network of state operations is going to situate Acreage Holdings as one of the strongest players in the marijuana industry when the U.S. marijuana legalization process does eventually get underway.
Acreage Holdings Stock
And now on to how you, dear reader, can profit from Acreage Holdings stock.
The company is not yet public, but plans to register on a Canadian exchange by November. It is accomplishing this feat via a reverse takeover of Ontario’s Applied Inventions Management Corporation.
“Following an extensive review of strategic options, we believe an RTO best positions our company to maximize the large footprint, operational depth and powerful consumer brands that we are building,” said Murphy. (Source: “Applied Inventions Management Corp. and Acreage Holdings Announce Proposed Reverse Takeover,” Acreage Holdings, September 21, 2018.)
“Accessing the capital markets will provide us additional financial resources to continue innovating, bringing consumers safe, predictable cannabis products, and providing them an exemplary customer experience.”
Murphy also explained that his only choice was a Canadian listing due to the U.S. restrictions on pot companies.
The Acreage Holdings reverse takeover is on track to be completed by early November and will allow investors to gain early exposure to the U.S. marijuana market.
Of course, when U.S. marijuana legalization eventually arrives, this will almost undoubtedly be the strongest marijuana market in the world, making an Acreage Holdings play early on a potentially very strong one.
The Acreage Holdings forecast is then very much tied to the political developments within the U.S., which is likely why the company is appointing so many political figures to its board.
While the Canada legalization has made it preferable for the company to list on a Canadian exchange and gain instant access to large pools of capital from investors, ultimately the company will want to transition on to a major U.S. listing as we’ve seen done several times now in the marijuana industry by Canadian companies.
There’s a lot to like about the Acreage Holdings forecast.
In what is akin to an initial public offering, the Acreage Holdings reverse takeover is sure to drum up a lot of interest when the stock hits the market.
The main issue is the timing. With the marijuana industry in the midst of a downturn right now, this is not the best time to go public. Still, the future of the company appears bright due to its strong roster of board members, its large presence in the U.S. marijuana market, and its potential to expand in the near future to more states.