Acreage Holdings Inc. (OTCQX:ACRGF) announced today that it is launching a range of new cannabis products under its "House of Brands" strategy. Acreage stock reacted positively to the announcement, gaining 2.24% during Monday morning trading.
What is Acreage's "House of Brands"?
Acreage's "House of Brands" strategy is a portfolio of unique brands aimed at various sectors of the market. Today's announcement marked the launch of three new brands: The Botanist, Natural Wonder, and Live Resin Project. This range of new brands will see the launch of a number of innovative new products, such as The Botanist's line of high-CBD tinctures for the Iowa medical market, and Natural Wonder's discreet microdose breath spray, which will be available in dispensaries in Oregon.
Live Resin Project will launch in California later this month and will see a range of new live resin products in a variety of raw concentrates and easy-to-use vape cartridges brought to market across the state. Live resin is an innovative extraction process that flash freezes whole cannabis plants in order to achieve a high-quality, flavorful concentrate. The process was invented by legendary cannabis extractor and Acreage “Green Team” member William “Kind Bill” Fenger.
How did Canopy Growth's Acquisition Effect Acreage Stock?
In April, leading Canadian cannabis firm Canopy Growth (TSX:WEED) (NYSE:CGC) announced it would acquire Acreage Holdings for $3.4 billion USD, but not until the US federally legalizes cannabis, and with a seven and a half year expiration being placed on the deal. However, following the Canopy Growth scandal in June which saw the dismissal of CEO Bruce Linton over regulatory infringements, Acreage stock tanked 48% from a year high of $20.86 in May to last week's low of $10.81.
Acreage stock hit a year-low of $10.81 last Wednesday; however, today's announcement was met with some optimism by investors as Acreage shares rose 2.24% to $11.20. Kevin Murphy, Chairman and CEO of Acreage Holdings, said "Establishing a ‘House of Brands’ has always been at the forefront of our strategy to deliver long-term shareholder value, and launching these products is a significant milestone for us. We look forward to rolling out our product lines across our national footprint over the rest of the year.”
While Acreage stock currently sits at one of its lowest ever valuations, particularly following a lack of investor confidence in Canopy Growth's acquisition of Acreage pending US federal legalization of cannabis, the optimistic sentiment displayed by investors off the back of today's announcement could represent the beginning of a period of growth for Acreage shares. With the ever-increasing possibility of the passing of federal legislation on cannabis reform in the US, and a massive rise in demand for a broad variety of cannabis products, the future could be bright for Acreage Holdings.
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