New York-based  Acreage Holdings, Inc. (ACRG-U.CN) (ACRGF) delivered fourth-quarter revenue of $21.1 million and full-year 2019 revenue of $74.1 million, a 101% and 251% increase, respectively, compared to the same periods in 2018.

The net loss was a whopping $65 million versus last year’s $29 million for the same time period. The net loss for the full year was a staggering $195 million versus the fiscal year 2018’s loss of $32 million. The loss per share was $0.16 versus last year’s $0.10. The company reported the adjusted net loss as $14.6 million and $50.6 million for the fourth quarter and full-year 2019, respectively.

“While 2019 was a challenging year for the industry, I am pleased with the many accomplishments we delivered for shareholders including launching three award-winning brands, implementing our Canopy Growth strategies, and significantly growing our retail and wholesale businesses.  We subsequently secured capital for our short-term operating requirements, and we are targeting positive pro-forma adjusted EBITDA in the second half of the year,” said Kevin Murphy, Chair and CEO of Acreage.

Restructuring

Just a few weeks ago the company said that it had signed multiple complicated financing deals including a $100 million credit facility, with the first drawdown of $49 million. The deal also includes a $30 million private placement of special warrants and an option for an additional $20 million special warrants. The company stressed it would not affect the company’s plan with Canopy Growth.

The financing also includes a $50 million private loan with $21 million provided by CEO Murphy. Murphy is lending the money to the IP Investment Company, which is lending it to Acreage. Then he will receive $23.1 million at maturity in one year, plus 304,001 Interest Shares. That’s approximately an 18% interest rate.

Kevin Murphy, Chairman and CEO of Acreage said, “In a time of limited capital availability for our industry, I am excited to announce these proposed transactions to strengthen our balance sheet, further enabling us to execute our plan to be a leading consumer cannabis company in the U.S.  In the course of these transactions, we have cemented a relationship with a well-capitalized institutional lender that has the capacity to provide additional credit facilities as necessary.”

The company is also rumored to have sent out emails laying off employees.

Botanist On The Boardwalk

Acreage also announced this week that it had opened a new location on the Atlantic City Boardwalk at 1301 Boardwalk, Atlantic City, New Jersey. With the opening, Acreage now owns or has management services, consulting or other agreements (including pending acquisitions) for 31 operational dispensaries in 12 states, including 13 The Botanist branded dispensaries.