Acreage Holdings and Medterra Announce a Joint Venture
NEW YORK, May 3, 2021 – PRESS RELEASE – Acreage Holdings Inc., a vertically integrated, multistate operator of cannabis licenses and assets in the U.S., announced its subsidiary, Universal Hemp LLC, reached an agreement with Medterra CBD, a cannabidiol (CBD) company. This partnership will allow Acreage Holdings to tap into Medterra’s innovation pipeline, high-quality CBD and significant e-commerce platform for immediate nationwide distribution. Five Farms CBD, a subsidiary of Medterra, will develop a full-spectrum CBD collection under The Botanist, an Acreage Holdings brand. This partnership makes this a first in the cannabis industry for a CBD and a publicly traded cannabis brand to collaborate.
“Leveraging insights and technology from Medterra to develop Five Farms has allowed us to scale the brand with record-breaking growth over the past year. We’ve been laser-focused on identifying how to resonate with the cannabis-friendly consumer,” said J.P. Larsen, co-founder of Medterra and president of Five Farms. “Incorporating Acreage’s The Botanist brand under Five Farms will allow us to innovate for their target demographic and rapidly expand the brand’s national footprint—it’s an evolution for both industries and the future of CBD and cannabis companies.”
“This asset-lite approach to entering the U.S. CBD market with Medterra, a leader in the industry, will allow Acreage to realize a low-risk, high-margin revenue stream, and is aligned with our shareholder commitment to deliver increased returns and outsized shareholder value creation,” Acreage CEO Peter Caldini said. “Partnering our flagship brand, The Botanist, with Medterra’s fastest-growing line, Five Farms, ensures the broadest consumer distribution through their industry-leading e-commerce platform, as well as the most efficient ‘go-to-market’ strategy.”
Acreage will license The Botanist brand to Five Farms, which will manufacture, market and sell The Botanist branded CBD products through Medterra’s e-commerce platform. The Botanist branded CBD is expected to be available in the second half of 2021.