Claiming its CannaBliss stores were negatively affecting the company’s bottom line and utilizing management resources, Acreage Holdings, Inc. is selling its four Oregon dispensaries to Chalice Brands Ltd. The deal is valued at $6.5 million. Instead of trying to be the largest MSO in the most states, Acreage’s strategy is to target only core states.
“The sale of our Oregon operations represents another strategic step in our previously announced operating strategy,” stated Peter Caldini, Acreage Holdings CEO. “As we previously communicated, Acreage remains focused on our three key strategic objectives – driving profitability, strengthening our balance sheet, and accelerating our growth in our core markets.”
Once the services agreements are completed, Cannabliss is expected to carry Chalice Brands products. Chalice’s retail footprint increases from twelve to sixteen stores in Oregon. With the Cannabliss acquisition, Chalice significantly increased its vertical margin through the distribution of its Bald Peak flower, Chalice, Elysium Fields, RXO, and Private Stash branded products into the Cannabliss stores.
“This is a fantastic opportunity for Chalice to edge closer to our goal of achieving our targeted market share in the state of Oregon while entering the Eugene market, and immediately enables the deployment of our Chalice products to more stores,” said Chalice CEO Jeff Yapp. “Adding the Cannabliss retail stores increases our footprint from twelve to sixteen stores…nearly a 130% increase in retail footprint for this year alone. The Cannabliss team has done a tremendous job in Portland, Eugene, and Springfield, Oregon in building historic businesses and a strong reputation for friendly customer service – exactly aligned with what Chalice looks for in a partner.”
Acreage’s four Oregon retail dispensaries are branded as Cannabliss & Co. The sale will end the company’s presence in the state. The Oregon dispensaries sold include the Firestation 23 location in Portland which was Oregon’s first medical marijuana dispensary and the first adult-use dispensary to open in the city of Portland.