Acreage Holdings Inc. Files Prospectus to Raise $800 Million USD

Written by: Steven Lachard – Marijuana Business Observer 

In a preliminary short form base shelf prospectus filed by Acreage Holdings, Inc. (CSE:ACRG.U) (OTC:ACRGF) (FRA:0VZ) with the Canadian Securities Administrators on June 24th, 2019, the U.S. multi-state marijuana operator disclosed that it will be embarking on a capital raise that is nearly double the size of PAX Labs‘ recent $420 million USD raise.

According to the SEDAR filing, “from time to time, during the 25-month period that this Prospectus, including any amendments thereto, remains effective,” the company may offer and issue up to $800,000,000 USD or the equivalent in other currencies based on the applicable exchange rate at the time of the offering.

This filing comes just hours after investors received notification that Acreage set the record date for entitlement to the pro rata portion of the $300,000,000 USD in option premium being paid by Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) (FRA:11L1) as consideration for granting the Canopy Growth Call Option.

What Securities are Acreage Offering?

The offering may consist of any combination or amount of the following securities:

  • Class A subordinate voting shares;
  • Debt securities;
  • Warrants to acquire any of the securities that are described in the prospectus;
  • or Subscription receipts and units comprised of one or more of any of the other securities that
    are described in the prospectus, or any combination of such securities.

What is Acreage Going to Use the Money For?

According to the prospectus, Acreage Holdings plans to use the net proceeds of the offering for “general corporate purposes, including funding ongoing operations and/or working capital requirements, to repay indebtedness outstanding from time to time, and to fund capital projects and potential future acquisitions.”

As noted in the prospectus’ risk factors regarding discretion over the use of proceeds from the offering, Acreage management “will retain broad discretion in allocating the net proceeds of any offering.”


As shareholders of Acreage await their proportionate sliver of the $300 million USD in option premium about to hit the company’s accounts, it looks like the company’s management is preparing for a spending spree. In the meantime, be sure to subscribe to updates here so you never miss an important development.