In an effort to preserve cash, New York-based Acreage Holdings has made a number of strategic moves intended to help the company mitigate the economic impact of the coronavirus pandemic.
In a press release issued last Friday, the company said it had temporarily furloughed 122 employees and closed certain U.S. operations including dispensaries in Maryland and North Dakota, a wholesale outfit in Iowa and factories in California, Oregon and Washington.
“As a result of the COVID-19 pandemic, we have made the very difficult decision to furlough several of our employees and close certain facilities while we navigate through the crisis,” Acreage CEO Kevin Murphy said via a press release.
In addition to those cost-cutting measures, Acreage also canceled a $120 million deal to acquire Nevada’s Deep Roots Medical, LLC, and terminated an agreement to purchase a medical marijuana dispensary in Rhode Island.
“These bold measures will help to ensure that we emerge from this very challenging situation stronger than ever before,” Murphy added.
In the release, Acreage said it is planning for a “significant economic downturn,” adding that moves offer the company the “most prudent path toward profitability.”