Tropical Storm Ida damaged Acreage Holdings Inc. (OTC:ACRGF) cannabis cultivation site in Sewell, South Jersey, delaying the company's cultivation plans. Acreage had planned to start producing marijuana at the site in early 2022.
Now, that is “unlikely,” said Steve Goertz, Acreage’s CFO, who described the damage as “extensive.”
Acreage bought Compassionate Care Foundation last year and also grows medical marijuana in Egg Harbor Township. It has dispensaries there, in Atlantic City and in Monroe Township, reported NJ.com.
After Hurricane Ida made landfall in Louisiana on August 29, it hit New Jersey the night of September 1, killing 27 people. Six counties have been declared major disaster areas by President Joe Biden.
Cannabis businesses were affected along the coast. “Climate disruption is something cannabis companies, unfortunately, must come to expect, '' said Kaelan Castetter, a New York cannabis consultant whose Manhattan client saved his CBD shop from major flood damage only to return home to a flooded apartment, reported MJBizDaily.
In May, Acreage and Medterra CBD, LLC joined forces to develop a CBD-based collection of products. The move followed the sale of Acreage's Florida operations to Red White & Bloom Brands, Inc. (CSE:RWB) (OTCQX:RWBYF) for $60 million.
Acreage, a multi-state operator released its second-quarter financial results on August 10, which were followed by a report by Pablo Zuanic from Cantor Fitzgerald.
The vertically integrated cannabis company stated it had consolidated revenue of $44.2 million, up by 63% from the same period in 2020. However, the firm maintained a price target of $2.24 on the floating share class (ACRDF), down from a previous price target of $4.80.
Zuanic said Acreage stocks are more tied to Canopy Growth’s CGC share price than to the company’s own fundamentals.
Although, with its cultivation facilities in trouble due to the damage wreaked by Ida, no one knows for sure what's in store for Acreage, or any other business that finds itself in the eye of the storm.