Mr. Kevin Murphy reports

ACREAGE HOLDINGS REPORTS SECOND QUARTER 2019 RESULTS

Acreage Holdings Inc. has released its financial results for the quarter ended June 30, 2019.

Second quarter financial highlights:

• Reported second quarter revenue of $17.7-million, a 501-per-cent increase compared with the same period in 2018;
• Pro forma revenue* for the second quarter was $36.6-million;
• Reported a net loss attributable to Acreage of $33.9-million;
• Adjusted net loss* attributable to Acreage was $17.1-million;
• Pro forma adjusted EBITDA* (earnings before interest, taxes, depreciation and amortization) was a loss of $12.0-million.

* Pro forma revenue, adjusted net loss and pro forma adjusted EBITDA are non-IFRS (international financial reporting standards) measures.

"During the second quarter, we received overwhelming support from our shareholders and a final court order to proceed with our historic arrangement with Canopy Growth. The arrangement unlocks significant potential and will help further position Acreage as the leading cannabis operator in the United States. I am excited to share our strategy leveraging Canopy Growth's brands, technology and IP, which will give us a significant advantage over our competition," said Kevin Murphy, chairman and chief executive officer of Acreage.

Acreage-Canopy arrangement update

The following are key highlights of management's strategy leveraging Canopy Growth's technologies, systems, IP, brands and know-how. As management continues to explore the vast wealth of opportunities, Acreage anticipates adding to the strategy.

Dispensaries:

• In addition to the Botanist, Acreage will begin leveraging Tweed and Tokyo Smoke dispensaries across the United States.

Products:

• Continue with national launch of internally developed house of brands -- The Botanist, Live Resin Project, Natural Wonder;
• Expand brand portfolio utilizing Canopy Growth developed Tweed products in 2020;
• Launch Spectrum Therapeutics medical cannabis brand in 2020.

Processing/cultivation:

• Evaluate all facilities in design, preconstruction and construction phases to leverage Canopy Growth systems, technologies, IP and processes at Acreage's option;
• Commercialize Canopy Growth and ebbu developed IP for both in-house and co-packed brands via Form Factory, unlocking speed to market with innovative products and likely yielding cost savings.

Technology/other:

• Evaluating whether to voluntarily adopt Canopy Growth IT systems and architecture for potential synergies;
• Evaluating entering into additional agreements with Canopy Growth to use other administrative, back office functions and strategic vendor relationships.

"We remain deeply committed to the arrangement to acquire Acreage Holdings," remarked Mark Zekulin, CEO of Canopy Growth. "We support their revised path forward and are very much looking forward to being able to share that vision -- once federally permissible -- to continue building the relationship and our combined footprints within the United States."

Constellation Brands, the largest shareholder of Canopy Growth, expressed its support of the Canopy-Acreage agreement and the independent paths each is taking to fulfill their respective visions for cannabis not only in the United States, but globally as well.

"With the combined strengths Constellation Brands, Canopy Growth and Acreage Holdings bring to the table, no team is better positioned to win in the U.S. market when cannabis becomes federally permissible," said Bill Newlands, president and CEO, Constellation Brands. "Acreage's operational and retail assets, together with Canopy's IP, brands and product development capabilities, all supported by an unmatched balance sheet, will result in a powerful alliance with excellent prospects for the future upon federal legalization in the U.S."

Earnings call details

Acreage will host a conference call with management on Wednesday, Aug. 14, 2019, at 8:30 a.m. Eastern Daylight Time. The call will be webcast. To listen to the live call, please go to the company's website at least 15 minutes early to register, download and install any necessary audio software.

About Acreage Holdings Inc.

Headquartered in New York, Acreage is one of the largest vertically integrated, multistate operators of cannabis licenses and assets in the U.S., according to publicly available information. Acreage owns licences to operate or has management or consulting services or other agreements in place with licence holders to assist in operations in 20 states (including pending acquisitions) with a population of approximately 180 million Americans and an estimated 2022 total addressable market of $16.7-billion in legal cannabis sales, according to Arcview Market Research. Acreage is dedicated to building and scaling operations to create a seamless, consumer-focused branded cannabis experience. Acreage's national retail store brand, The Botanist, debuted in 2018.

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