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Ladies and gentlemen, thank you for standing by and welcome to the Acreage Holdings Q420 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 on your telephone. If you require any further assistance, please press star 0. I'd now like to hand the conference over to Mr. Steve West, Vice President of Investor Relations. Please go ahead.

Good morning, everyone, and welcome to the Acreage Holdings fourth quarter conference call. Joining me today are Peter Caldini, our chief executive officer, and Glenn Leibowitz, our chief financial officer. This call is being recorded and will be archived on our investor relations website at investors.acreageholdings.com. Today's call contains forward-looking statements subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from those forward-looking statements. Any such information and statements should be taken in conjunction with cautionary statements in our press releases and risk factor discussions in our public filings found on CDAR and EDGAR, as well as our investor website. Any forward-looking statements reflect management's expectations as of today's date, and we assume no obligation to update them other than as may be required by applicable securities laws. Now, for your future scheduling purposes, our first quarter 2021 earnings release is tentatively scheduled to be issued after the market close on May 11, 2021, and subsequent analyst call will be held the morning of May 12, 2021. I will now turn the call over to Peter.

Thank you Steve and good morning everyone. Before I begin discussing the performance and opportunities at Acreage, I want to take a moment to introduce myself. I was excited to join Acreage at the end of last year and that excitement has continued as I've gotten to know the organization and its people. Based on everything I've seen so far, I am encouraged about where we are as a company and believe we are on the right path for sustainable, profitable growth and returning to a leadership position in the cannabis industry. My appointment to the CEO role at Acreage builds upon my past experiences and successes. I have over 30 years of experience building and restructuring multinational organizations around the world with a strong emphasis in consumer healthcare and consumer packaged goods. This experience was gained in heavily regulated industries while at Pfizer, Bayer, and Wyatt. Before coming to Acreage, I was the CEO of a cannabis-focused special purpose acquisition corporation, or SPAC. In that role, I explored many national and international cannabis companies with a view to making acquisitions and implementing operational restructurings. These experiences will help me to drive Acreage forward in pursuit of its goals. I am confident most of the pieces are in place for ACREDs to succeed. Leveraging my significant experience turning around large organizations, we will continue executing against our strategic plan and begin reporting positive adjusted EBITDA as promised. I would now like to briefly discuss some of our fourth quarter highlights. The execution of our refocused plan continues to move us toward profitability. Our financial fundamentals during the fourth quarter continue to improve both sequentially and year over year despite a very challenging macro environment brought on by one of the worst global pandemics in history and the operational challenges and complexities that came with operating in this environment. Our reported revenue in the fourth quarter was $31.5 million and our adjusted EBITDA was a loss of $3.5 million. a 49% improvement versus our third quarter, and a clear sign we are rapidly approaching profitability. Looking deeper into our operational performance, our fourth quarter reported retail revenue was $25 million, a 58% increase year over year. We ended 2020 with 29 operational dispensaries, including our managed entities. Our company-owned same-store sales growth during the fourth quarter was around 27%, marking the eighth consecutive quarter of double-digit growth. The continued evolution and development of our key brands helped drive our retail sales performance. During the quarter, we launched several new CBD-derived products under our Innocent brand in Illinois, while our managed entity in Ohio continued their amazing performance with the rollout of new botanist-branded products and form factors. And finally, in New York, we launched several new botanist-branded gel capsule products. In our wholesale business, we reported revenue of $6.5 million, which was a 32% increase year-over-year. On a full-year basis, our wholesale mix was approximately 25%, exceeding our full-year target of at least 20%. Our future expectations for our wholesale business remain high. We believe there are significant growth opportunities through increased order size and velocity as we complete our cultivation and processing expansion projects in Illinois, New Jersey, and our recently completed expansion in Pennsylvania. We expect this continued focus will lead to incremental revenue growth and margin expansion through 2021 and beyond. I would like to now highlight some of our fourth quarter operational achievements. First in Massachusetts, we opened our second dispensary in Shrewsbury, which was approved for adult use sales. On the same day, our Worcester medical dispensary was approved for adult use sales, so we now have two adult use dispensaries open and operational out of the maximum three allowable in Massachusetts. In Illinois, we continued working towards completion of our cultivation and processing expansion. Once completed, the facility will encompass 80,000 square feet of cultivation and drying rooms and a beverage canning line for a canopy developed THC beverage launch. Additionally, the facility will include state-of-the-art extraction capabilities for production of a wide assortment of derivative products and edibles to support both our wholesale and retail sales efforts. We expect expansion completion later this summer. Importantly, in Illinois, we continued to scale and expand our botanist and tweed flower offering through our wholesale efforts and achieved 100% retail distribution in the state. This positions our wholesale business in Illinois for significant growth once our cultivation and processing expansion project is completed. In New Jersey, we continue to report strong revenue and EBITDA growth, even while managing through COVID-related challenges. We expect this momentum to continue as we solidify our position as a leader in New Jersey. We expect to open our third dispensary in Williamstown during the second quarter. We should complete the expansion of our Egg Harbor cultivation facility in early 2022. And importantly, we recently won our zoning appeal and will be applying for construction permits to complete the construction of our Sewell cultivation facility and expect it to be fully operational in early 2022. This was a great win-win for Acreage and the citizens of Montuoc Township. This facility, once up and running, will have a positive economic impact in the area through increased jobs and tax revenues. So within the next year, Acreage will have three operational dispensaries in New Jersey, the maximum allowable by current regulations, one of which is on the iconic Atlantic City Boardwalk and approximately 190,000 square feet of cultivation and processing space in New Jersey. Finally, I would like to touch on Ohio again. Our partners continue to lead the state in terms of retail sales and achieving full vertical integration. The cultivation facility received its operating certificate and first seeds were planted in December. The team is quickly working to increase its extraction capabilities to broaden its product offerings across a broader spectrum under our very popular botanist brand. They continue to quickly expand the botanist-branded offerings with the addition of new vape cartridges and gummy flavors. As the seventh most populated state that we serve with a strong medical program and a leadership position in the market, Ohio is a strong fit in our portfolio with significant growth potential both short and long term. We expect to complete our acquisition of Ohio and begin consolidating their financial results before the end of 2021. Before commenting on our strategy, I will turn the call over to Glen for his financial discussions. But before doing so, I would like to take this opportunity to thank him for his years of dedication at Acreage and acknowledge the significant contributions he's made to Acreage's success. Glen exhibits exceptional work ethic and professionalism, and he has been critical in getting me quickly up to speed He helped lead Anchorage from an investment vehicle with virtually no revenue to a publicly traded operating company with nearly $180 million in annual revenues, including our managed entities. Glenn, thank you for all your hard work and leadership, and I know that I speak for the entire Anchorage family when I wish you the very best in your future endeavors. I will now turn the call over to Glenn.

Thank you, Peter, and I truly appreciate those kind words. Good morning, everyone. Last night, we reported fourth quarter 2020 results. Our reported revenue was $31.5 million, which increased 50% versus the fourth quarter of 2019, and an acceleration versus our third quarter 2020 revenue growth of 42%. This growth was primarily driven by our Midwest and mid-Atlantic regions, which exhibited strong overall performance. Our company-owned dispensary same-store sales had growth of approximately 27%, and the strength of our ramping wholesale business also contributed to our results. Gross profit during the fourth quarter was $14.5 million, which was an increase of 86% compared to the fourth quarter of 2019. It was driven primarily by our revenue growth and optimization initiatives associated with our refocused plan. Gross margin during the fourth quarter was 46.1%, which was a 900 basis point improvement compared to the fourth quarter of 2019. and a 360 basis point improvement compared to the third quarter of 2020. I am pleased to note this reported gross margin of 46.1% was the highest in our history and a key indicator a refocus strategy is working. EBITDA during the fourth quarter of 2020 was a loss of $36.7 million, which was a significant improvement versus our EBITDA loss of $64.7 million in the fourth quarter of 2019. Our adjusted EBITDA during the fourth quarter was a loss of $3.5 million, which is a significant improvement versus the fourth quarter of 2019 and versus the third quarter of 2020. I would now like to discuss our managed entity results. During the fourth quarter, our managed entities generated $15.7 million in net sales, which increased 41% versus the fourth quarter of 2019, driven primarily by same-store sales growth of about 71% and partially offset by moving New Jersey from a managed entity to our consolidated results. On a geographic basis, Ohio was once again the biggest contributor to revenue growth. Our managed entity's fourth quarter EBITDA of $6 million was up 141% compared to the fourth quarter of 2019 and up 27% sequentially versus the third quarter of 2020. This year-over-year EBITDA growth was driven primarily by the Midwest and the New England region. Moving to the balance sheet, We ended the year with approximately $55 million in cash and restricted cash on hand. Our cash position and the overall strength of our balance sheet continue to be a priority for the organization. We have taken several steps recently to improve our financial position. First, in October, we retired $18 million of short-term strategic bridge financing that was secured in June of 2020. Second, in November, we borrowed $28 million through a senior secured term loan. Third, during December, we secured a construction financing loan with a principal amount of approximately $12 million that will be used to complete the expansion of our cultivation and processing facility in Illinois. And finally, during the first quarter of this year, we announced a definitive agreement for the sale of our Florida operation and a dispensary and cultivation facility in Oregon, which adds considerable capital to our expansion projects and significantly reduces our cash burn. Recently, as cannabis asset values increased and our fundamentals improved, we are closely monitoring the capital markets for opportunities to potentially further recapitalize our balance sheet and lower our cost of capital. Additionally, we continue our discussions to divest our remaining held-for-sale assets in California, Michigan, and Oregon. That concludes my prepared remarks, and I'd like to thank all of the analysts and the shareholders for your support and friendship we have developed over the past few years. It's been my pleasure, and I look forward to seeing you again in the future. I will now turn the call back over to Peter for his strategic discussion and closing comments.

Thank you, Glenn. As we previously announced, Glenn will continue in his role until the end of March and assist with the transition to Steve Gertz. Steve's extensive experience as a public company CFO, expertise in complex transactions, and the recent experience in the cannabis industry make him the ideal person to lead Acreage's finance and accounting functions into the future. Looking forward, we believe good news for acreage and our industry is on the horizon. 37 states have legal medical or adult use cannabis programs and additional states are considering legalization reforms as we speak. At the federal level, there are very positive signals from Capitol Hill with respect to cannabis reform. Recent elections results have been very positive for the industry and have positively impacted cannabis asset values. both in the public and private markets. As an example, look no further than the recently announced cannabis deals in Florida, including the sale of our own non-core Florida operations. In the 37 states with legal cannabis programs represents approximately 72% of the entire US population. I believe these legislative developments accelerate the timing of closing the agreement between acreage and canopy growth. Although I cannot predict the timing of the trigger event, I am confident the accelerated momentum at both the state and federal levels will lead to federal reform measures necessary for the trigger event to occur. Since joining Acreage in December, a large portion of my time has been devoted to understanding, refining, and executing on our refocus strategy. This strategy will continue to evolve due to the changing business and regulatory environment. My number one priority is delivering positive EBITDA and ultimately free cash flow to shareholders. To this end, there are several drivers I am focused on ensuring Acreage achieves sustainable, long-term, profitable growth as quickly as possible. First, we must continue strengthening our balance sheet. Our ability to execute our strategy has been aided by improvements to our financial position. We continued bolstering our balance sheet by securing long-term lower interest rate financing and paying down our short-term high interest debt. Additionally, we eliminated negative earnings and management burden by divesting our non-core Florida operation for an aggregate purchase price of $60 million. Strengthening our balance sheet continues to be a priority, which will be significantly enabled once we begin reporting positive EBITDA. Second, we must remain focused on our nine core markets and their operational fundamentals. We have a strong business in the very attractive markets of New Jersey, New York, and Pennsylvania, as well as our managed entity in Ohio. Acreage has the right to win in these markets, and with the pending adult use legislation, we are well positioned to drive significant growth in both relative and absolute terms versus our peers for the foreseeable future. We fully expect to expand our presence in our nine core markets primarily through new dispensary openings and cultivation expansion projects. The focus on our nine core markets includes a commitment to the wholesale channel. We have established a solid operational core in Pennsylvania, Massachusetts, and Illinois. We are working hard to accelerate our cultivation expansion projects in Illinois and New Jersey We are also exploring opportunities to expand our cultivation facility in New York in preparation for adult use legislation. Currently, our product demand is significantly outpacing our supply and completion of these expansion projects should allow us to close the gap and accelerate our revenue growth and improve our margins. Third, we'll implement a renewed focus on local and new store marketing. While Acreage has historically demonstrated a strong ability to produce amazing products that consumers and patients desire, with the increase in the number of competitive dispensaries, we will need to be more successful at promotions to enable higher sell-through. Fortunately, one of my priorities and successes at companies like Unilever, Bayer, and Pfizer was developing and implementing actions designed to stimulate sales growth by increasing consumer demand at the point of sale. We are moving quickly to implement a cultural and operational shift to accelerate sales at retail. Fourth, we will look for additional ways to leverage our intellectual property arrangement with Canopy. Through this arrangement, we are leveraging Canopy's knowledge and aggressively building out the necessary capabilities to manufacture, package, and distribute THC infused beverages. We plan to launch our THC infused beverages in California this summer and Illinois later in the year. I am very excited about the impending beverage launch and the long-term benefits that it is expected to bring. Fifth, while THC will always be our primary business and core competency, I believe there is an opportunity to generate incremental revenues with attractive margins in CBD while at the same time building out our core brand equity. We will likely adopt an asset-light approach in this industry, which we believe will generate favorable returns on our investment while enhancing the consumer awareness and equity of the Botanist brand. Finally, we will ensure our organization has an appropriate corporate footprint and cost structure to responsibly drive the company forward. In fact, we recently took steps to reduce our corporate cost base through additional headcount reductions to drive operational efficiency. Our improving operational and financial fundamentals continue to validate our refocus strategy as illustrated in our earnings release last night. Given the positive momentum and improving trends in our financials, combined with our recent divestiture of Florida, plus some additional corporate spending reductions, we expect to report positive adjusted EBITDA in the first half of this fiscal year. In closing, I want to summarize what I believe are the most important themes from today's call. Our financial and operational fundamentals continue to improve, and we will achieve positive EBITDA in short order. We have strengthened our balance sheet and our financial position through our focused strategy centered around our nine core states. Finally, we have a tremendous opportunity to further leverage our relationship with Canopy Growth, utilizing their vast experience with both in branding and new product development. There's still much work to do, but Acreage is excited and ready for the challenge. We have a tremendous team of dedicated and passionate employees committed to making acreage a success. I would like to thank all our amazing employees who work so hard every day during these very challenging times. With that, I will now have the operator open the line for questions.

If you'd like to ask a question at this time, please press star, then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. First question comes from Aaron Gray with Alliance Global.

Hi, good morning. And Peter, congrats for taking the helm as CEO. And Glenn, I'd also like to offer my best in your future endeavors. I'm sure we'll come across each other. So first question for me, Peter. So I know it's still early days for you. Bold up to kind of hear your thoughts. You kind of offered some of the things on your strategy. which as you kind of look to take a look at the organization in the first couple months, just, you know, anything you've seen in terms of improvements that you see as low-hanging fruit for the company, do you think could be improved kind of near-term as you look to hit that target of, you know, profitability in the first half of 2021? And then how do you think about that versus the long-term aspirations as you look at the different parts of the business between, you know, kind of your core states and then CBD and otherwise? Thanks.

Yeah, thank you, Aaron, for the question. I think the first thing when you look at the business, we have a very attractive footprint with our core nine states. And when you talk about states like New Jersey, New York, Pennsylvania, Ohio, and these are very attractive markets that have significant growth potential. And as I mentioned in the prepared remarks, these are markets where we have the right to win. And a good part of our focus is really going to make sure we accelerate growth in those states. And you're seeing that with some of the capital projects that I highlighted. We're going to be expanding our cultivation footprint in New Jersey. We expect to have about 190,000 square feet of cultivation available early in 2022. We also are opening up our third dispensary in New Jersey. in the second quarter this year. And also in Illinois, we have the cultivation expansion as well. So it's really about, in the early days, it's really about focusing our resources, our organizational capabilities around those core markets. We've made the tough decisions in the past to kind of refocus and divest certain states. As it relates to the organization, it's mentioned in my prepared remarks that we took some actions from a corporate standpoint, and this is really to drive operational efficiency. We looked at certain roles at a corporate level, as well as at a local level, defined all the tasks, and whether they're better suited to be at a corporate, that's more strategic in nature, or better suited to be at the local level, which is much more tactical and based on execution. So from doing that, we're able to eliminate some roles and put us in a better position to execute at a local level and really capitalize on the opportunities we have in our core markets.

Okay, great. Thanks for that. And then second question, you mentioned how you kind of shared up your geographic footprint and focused on those core states. And as we look at the current operational environment, you know, being state by state, you know, within the near term, you know, I'd love to hear your thoughts in terms of how you're setting up for the potential, you know, change in that. You know, you mentioned potential changes at the federal level, and we'd love to get your view in terms of, you know, how soon you think that might be and how you're setting up I don't only set up for today's market, but also potential changes to where, you know, it could, you know, maybe not even be state-by-state in the next couple years, but also have more of a broader footprint maybe over time, and maybe that's something that you do, you know, once you shore up those core states. But I'd love to get your opinion as that, as there have been some of your peers out there that kind of continue to expand over the past, you know, 18 months or so. Thank you.

Yeah, so, Aaron, you know, our primary focus is to really, as you said, to shore up, you know, our presence in our core markets. And I think a lot of that, in order to be successful, you have to be probably a little more decentralized and centralized. At the same time, we are, as it relates to our corporate functions, we're looking at different ways that we can utilize those roles to drive strategies and synergies across to different states, but it's critically important in a decentralized model that exists. I mean, every state is very different from a regulatory environment that you do have the local capabilities and making sure that you're successful at a local level. Really, ultimately, when a time comes when there's federal permissibility and you're operating basically on a national footprint, the transition's not that difficult. And I think as we get to that point and we get close to that point, we'll be in a position to implement that. As it relates to the timing, I think we've seen, like everybody in the industry, very positive momentum from the legislative footprint, whether that's at a state level and a federal level. It's quite difficult, as you can imagine, to predict when that's ultimately going to happen. whether there's legislation sometime later this year or into next year. We're not in the position to predict the political environment and what happens from that standpoint. But regardless, acreage, I think, is really well positioned with those core nine states to take advantage of any type of legislation change, both at a state level as well as at a federal level. And then lastly, around M&A, our focus, I think we have a lot of opportunities to strengthen our position in our core markets, and that's going to be the priority. It's not to say that we wouldn't look at strategic M&A opportunities, and we will do that, primarily to kind of enhance some of our capabilities in our core markets. I think that would be the priority. But at some point, if there is a good strategic M&A bolt on that we could take a look at, we would certainly explore it.

Okay, great. Thank you. I'll jump back in the queue.

Next question comes from Matt Bottomley with Canaccord Genuity.

Yeah, good morning all. Thanks for taking the questions. I'm just wondering if you can provide a little more color on what the market dynamics were in your portfolio in Q4 over Q3 a little bit more. One of your peers that reported was noting some COVID headwinds and some weather patterns that caused some issues over the last four to five months here just on getting more people out to stores and some of the logistical considerations with that. So is that something you experienced as well or can provide any commentary on what you saw in Q4 versus Q3?

Peter, do you want me to take that one?

Yeah. Thank you.

Yeah, thanks for the question, Matt. Yeah, in most of our markets, we're definitely seeing positive results, but there are some anomalies, whether it's COVID-related or weather-related. We did have a slower Q4 related to our Oregon assets. They're in locations which are more tailored towards night spots and with the COVID impact on foot traffic there, that's what we're seeing. If you strip out Oregon, we would have had much better store-on-store, same-store sales growth would have been about 30% as opposed to the 26% that we reported. Additionally, from Q3 to Q4, We made some strategic decisions as it relates to our wholesale opportunities in Massachusetts, and that was a result of opening those two adult-use stores in Massachusetts. So we were holding back product for anticipation of those retail sales activities. So those are the real drivers of what the changes were from Q3 to Q4.

Perfect. And do you have any other color on sort of in-store dynamics? So for consumers that were coming into stores or continued customers, just given, you know, the second wave of COVID, we saw initially there was a bit of a spike in demand and some potentially pantry loading. But was that dynamic seen in this second wave or were there different takeaways?

As it relates to the rest of the platform, we are seeing growth, same-store sales growth. So we're not seeing significant pantry loading. We're just seeing overall growth in the business, which is great. which is natural as the stores remain open for extended longer periods of time. We continue to see additional traffic and additional retail sales in the stores. So I think the health of the retail is there. We didn't see in Q4 any pantry loading or anomalies. It was sort of steady state growth as we anticipated.

Got it. And just last one for me. Any comments on the Illinois market in particular? One is obviously the more healthy markets in the U.S., but we've sort of seen some indications of potentially inventory levels starting to increase there. So do you have any market takeaways from what you guys experienced in Q4?

Peter, do you want to take the... the Illinois market, or do you want me to?

Yeah, listen, I think, you know, one of the things that we observed, you know, certainly in that market, and I think Glenn mentioned that was the COVID impact. I mean, it's certainly for us with the West Loop and the location, it's an ideal location based in where that business district is. But unfortunately, you know, with the COVID issues and a lot of the shutdown, I think we were severely impacted. And you also saw a number of stores that on occasion, because of some of the employees and the COVID impact, some of the locations had to shut down for several days. So I think because of that, it kind of created an inventory build in the state. I think like a lot of players, you know, we're battling through that, and I think I give the team a lot of credit in terms of how they manage it, making sure we have products available for our patients and our consumers. But that, to me, was one of the big drivers for that slowdown in Illinois and ultimately which is going to result in increased inventory in the market.

Perfect. Much appreciated. Thanks, and good luck, Glenn, with the next steps. Thanks, Matt.

Next question comes from Vivian Azer with Cohen.

Hi, this is Gerald Pasquarelli on for Vivian. Thanks very much for the question. So looking at your 4Q performance, margins were obviously strong, but your wholesale margin was very strong, up about 700 basis points sequentially. So any color you can provide just in terms of of the driver specifically as it relates to your wholesale margins, and then maybe some color on the sustainability of those margins in the context of what you're seeing in the wholesale pricing environment would be helpful. Thank you.

Sure. And just, Gerald, thanks for the question. And just to clarify, we don't give forward-looking financial guidance, but I can give you a bit more color and context on sort of how we look at our margins and the wholesale market for us. So, you know, our expectation is that we'll be in the mid-50s, 50% range on gross margin. That's been our driving north star of how we're aligning our business strategy. Our gross margin in Q4 was 46%, which was our highest gross margin in the history of the company. What you're seeing is the growth in our wholesale business coming from a couple of locations. We do have productivity out of our Illinois cultivation facility we did it make a couple of small expansion tweaks to our Pennsylvania location cultivation facility so as you as you see we're enhancing our wholesale capabilities along with Massachusetts as well so where where we have those wholesale capabilities we've been reinforcing and in strengthening those abilities and And that's what you're seeing come through in the margin increase.

Got it. Super helpful. I'll hop back into the queue. Thanks, Glenn, and good luck to you in your future endeavors. Thank you, Gerald.

Once again, to ask a question, please press star 1 on your telephone keypad. Next question comes from Glenn Mattson with Lattenberg.

Yeah, hi. Thanks for taking the questions. I'm curious about the – Is there any update or any changes to the kind of timing and schedule for when the various managed entities will roll into the parent company and just kind of how to think about that?

Yeah, so let me kick this off, and Glenn, you know, provide any additional. We, one of the, I think the best assets or strongest assets we have within our portfolio is Ohio. And we're a market leader in that state. It's a very attractive state. And we're doing an exceptionally good job in terms of managing the business there. And we're going through the process of completing that transaction and consolidating. We do expect that to happen in 2021. Probably in the back half of 2021 is what our current estimate is around that. Glenn, any other add-ons to that from the other states?

Yeah. Just to clarify what Peter was saying is we're always subject to regulatory approval, so that's why we can't give specific timing on transition of some of the assets. Glenn, so, you know, the expectation is at some point in this year, through regulatory approval, Ohio assets will be consolidated. The one update is in Maine. We did receive an adult-use license in one store in Maine, so that is now consolidated. There is still an ongoing matter with the state on the medical license, but there's no defined timeline or opportunity for the medical use in Maine at this point. But as soon as there is definitive timeline, we can certainly – inform everyone on that timing. And New Hampshire does not have a pathway to consolidation. And those are the three managed states, Ohio, the Maine, and New Hampshire.

Great. Two more. One on the Florida sale, and I guess Oregon as well. Can you talk about what kind of expense reduction we should think about on an operating expense level for not having to carry those assets?

Typically, we don't get into details on individual states. Generally, Oregon, we had closed some of the operations due to productivity at the cultivation level. And Florida, again, we don't give specific indicators on performance for the specific state level.

Okay, sure. And just thoughts on obviously New Jersey and New York are of significant impact to you guys. So could you give an update on when you're expecting adult rec sales to begin in New Jersey? I think most people think it's kind of like 4Q, but just get your guys' take on it and then how you think the process is going in New York and what your confidence level is that they'll get it done kind of like this time around as they've tried multiple times in the past.

Yeah, so I think, you know, New Jersey is probably a little bit of a more clear path than certainly New York. You know, the Governor Murphy signed the bill recently, so I think we're on our way. We also believe that realistically for adult use in New Jersey would be around Q4, potentially slip into Q1. It really depends in terms of You know, the cannabis regulatory commission in terms of making sure that they get the regulations out there. As I mentioned before, we're very well prepared and well positioned when that state does convert to adult use. We'll have our third dispensary up and running in Q2. And then also around a lot of the cultivation projects we expect to be completed the beginning of 2022. As it relates to New York, I mean, I think that's a little bit murkier picture. I think there's a lot of discussions going on between the governor's office and the legislature. I think it's also made a little bit more challenging considering the current situation for the governor. But I think our current thinking, and this is really subject to a lot of changes, probably realistically early 2023, potentially in the back half of 2022, but I think there's a lot we have to understand, and I think a lot's going to evolve in the coming months.

Great. Thanks to that caller, Peter, and Glenn, good luck going forward.

Thank you, Glenn. And this does conclude the conference call for today. You may now disconnect.