New York-based Acreage Holdings (OTCQX:ACRGF) has had a mixed few weeks. While Acreage stock hit a year-low last week ($10.81), the cannabis stock managed to climb nearly 3% at the start of this week. This increase was due to ACRGF announcing that it will be releasing new cannabis products.
Today, however, Acreage stock is trading down nearly 7%. What's surprising is that, twenty-four hours ago, the company released a relatively positive Q2 report.
Here's what we know.
Acreage Stock Drops After Q2 Report is Released
On Tuesday, August 13, Acreage Holdings released its financial report for the second quarter of 2019. Financial highlights include pro forma revenue coming in at $36.6 million and net loss totaling to $33.9 million. The figure that got people talking the most, however, was the increase ACRGF saw in second-quarter revenue. During Q2, which ended June 30, 2019, net quarterly revenue came in at $17.7 million. For perspective, that's a 501% increase from the same period last year.
Highlights from the Acreage Holdings Q2 report did not just center around numbers, however. The company also provided insight into the Canopy Growth (TSX:WEED) (NYSE:CGC) deal, first announced in April.
“During the second quarter, we received overwhelming support from our shareholders and a final court order to proceed with our historic arrangement with Canopy Growth," explained Acreage CEO Kevin Murphy. "The arrangement unlocks significant potential and will help further position Acreage as the leading cannabis operator in the United States."
And yet, despite it all, Acreage stock is trading well into the red zone Wednesday, August 14.
According to Yahoo Finance, as of 10:01 AM, Acreage stock is trading at $11.51; this puts the cannabis stock down 6.74%.
This is a tough pill to swallow for investors, mainly because after Monday's increase, people were thinking that Acreage stock might finally be entering a period of growth. Then again, it's still early in the trading day, and Acreage stock has plenty of time to turn itself around.
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