Acreage Holdings ACRGF

Acreage vs Curaleaf???

[Easymoney123]

I have been watching Acreage for a while but I am not invested but I am interested in the company and was wondering why there is such a discrepancy between Acreage and Curaleaf in market cap?  

- Acreage had revenue of 74.1 million for 2019 and at the moment they have a share price of $1.60 and and a market cap of 143.3 million U.S. and they only have 68.55 million shares outstanding and a public float of 63.5 million shares.  Acreage has a price to sales ratio of 1.876 which is very low compared to Curaleaf.

- Cualeaf had revenue of $221 million for 2019 and at the moment they have a share price of $3.90 U.S. and a market cap of 1.831 billion U.S. they also have 422.23 shares outstanding with a float of 334.09 million shares.  Curaleaf has price to sales ratio of 8.5.

Does anyone know why Curaleaf is trading at a much higher price to sales multiple compared to Acreage?  I mean Acreage has way less shares outstanding but has been absolutely crushed this year??  Would love to hear some people's opinions.

[Alex95]

In my opinion the reason is constellation brands. Look let's think about this for a second. Were  there any rules on how much stock constellation brands can buy of acreage holdings? No there is not.  Canopy growth will become a fully owned subsidiary of constellation brands. It is already written in the stars, in the constellations themselves ;) long story short, constellation

[Easymoney123]

Seems like a fair assessment but Acreage is way undervalued.  As long as they have enough cash and can get losses under control seems like a no brainer to buy this stock at these prices.  Do you happen to know how much cash Acreage has?  I have read they have access to around 150 to 200 million which they can access.  That seems like a decent amount of money if sales are

[Alex95]

They are so undervalued and not earning the respect they deserve. When they announced earnings they had about 27 million in cash. They have access to 30 million that they raised using equity and 100 million in debt financing. So you are right they have access to about 150 million in cash and will be enough to get through this. Acreage is safe. 

[Easymoney123]

I also read that Acreage should have expected sales of 300 to 400 million in 2021 which is massive compared to their market cap of 143 million at the moment.  Seems if revenue is anywhere close to 300 million this should easily have a market cap of 1 billion.  Do you know if they have halted a lot of construction?  Will that have a big impact to projected revenue in 2021?  

[AD2780]

Yes. They have stopped construction on FL. 1 open dispensary. Paying rent on 11 locations. They furlough construction managers while keeping useless and incompetent executives. This group destroyed a golden opportunity in FL.