May 17, 2018: Acreage Holdings (“Acreage”) (www.acreageholdings.com), one of the nation’s largest, multi-state cannabis corporations, has signed a letter of intent to enter into a long-term management contract to assist with expansion and operations of Compassionate Care Foundation, Inc. (CCF), a not-for-profit entity that operates a dispensary and cultivation facility in Egg Harbor, New Jersey. CCF is one of only six Alternative Treatment Centers that holds licenses from the state to grow and dispense medical marijuana. As part of the Arrangement, Acreage will provide the foundation with requisite financial resources to respond to growing patient demand.
CCF was one of the first Alternative Treatment Centers to receive the necessary approvals in New Jersey and currently operates the largest approved medical marijuana growing facility in the state, providing patient-centered treatment for patients with a range of often-debilitating conditions since 2013. The transaction contemplated by the letter of intent is subject to New Jersey’s regulatory approval process.
Acreage’s growth in New Jersey is part of a strategic plan to address additional patient demand related to legislative changes. As recently as last year, New Jersey had a relatively limited medical marijuana program. In March 2018, Governor Phil Murphy announced a significant program expansion to treat a wider range of conditions with fewer obstacles to enrollment and more dispensaries. As part of this expansion, New Jersey is expected to license more companies to grow, cultivate and sell medicinal marijuana. The Department of Health has quickly moved to responsibly implement the Governor’s intentions.