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Investor Alert

New York Markets After Hours

June 1, 2020, 7:55 a.m. EDT

Cannabis company Acreage enters funding agreements for up to $60 million

U.S. cannabis company Acreage Holdings Inc. (OTC:ACRGF) said Monday it has entered two funding agreements to raise up to $60 million. The first is a standby equity distribution agreement with an unnamed institutional investor for up to $60 million of its Class A subordinate voting shares, and the second is a private placement in which it issued $11 million in principal amount under a secured convertible debenture for gross proceeds of $10 million. Proceeds of both deals will be used for general corporate purposes and working capital. New York City-based Acreage has an option agreement with Canadian cannabis market leader Canopy Growth Corp. (NYS:CGC) (TSE:CA:WEED) , under which Canopy will take over the company as soon as the federal ban on cannabis has been lifted. Acreage shares were not active premarket, but have fallen 44% in the year to date, while the Cannabis ETF (PSE:THCX) has fallen 16% and the S&P 500 (S&P:SPX) has fallen 6%.

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