Mr. Carl Nesbitt reports

ACREAGE DEEPENS NEW JERSEY OPERATIONS WITH COMPLETION OF EGG HARBOR FACILITY EXPANSION

Acreage Holdings Inc. has completed its infrastructure expansion at its facility in Egg Harbor township, New Jersey. The multifaceted cultivation and processing upgrades support the continuing demand for products at both the retail and wholesale levels as well as the broadening of the company's brand and product offerings in the burgeoning New Jersey market. Additionally, with the expansion, the company expects to increase head count by approximately 15 per cent at the facility as of Q1 2024.

"We are absolutely thrilled to have completed the expansion of our Egg Harbor township facility," said Sharon Ali, executive vice-president, Mid-Atlantic region, at Acreage. "New Jersey is one of our cornerstone markets, where we continue to bolster our position as a leading operator in the state. These enhancements are timely as the state continues to present a tremendous opportunity for the expansion of our in-house brand product suite. Demand for our wholesale and retail offerings in New Jersey has remained persistent, as demonstrated by our record month of wholesale sales in August. This new capacity enables us to produce a larger and more diversified offering for two of the most popular segments in the market -- premium flower and edibles -- as well as top-selling concentrates for Superflux, which are anticipated to reach consumers by year-end."

Ms. Ali concluded: "With our expanded canopy, new genetics, and a wider breadth of extraction and processing capabilities, we will increase our competitive position in the state. These leading-edge upgrades position us strongly to meet the high market demand, and we expect to launch new, innovative products across a range of formats to New Jersey consumers in the first half of 2024."

Facility enhancements included:

• Expanded canopy, which is expected to significantly increase high-quality flower yields: The additional cultivation space will enable more efficient and consistent production of premium flower, which remains the leading product category in the state, and facilitate increased output of various product formats across the company's branded portfolio in New Jersey.
• Introduced new premium plant genetics to diversify the company's concentrate offering: The genetics were hand selected with the goal of setting a new standard in the industry for the quality and potency of Acreage's branded concentrates, which starts with the cultivation of top-tier cannabis plants.
• Enhanced extraction capabilities with an expanded manufacturing space, featuring a new hydrocarbon extraction unit and specialized areas for solventless extraction capabilities: The broader range of extraction techniques will allow for the expansion of the company's premium concentrates offering, including the highly anticipated cured and live resin concentrate that will play a pivotal role in growing the company's flagship brands in the New Jersey market, such as The Botanist and Superflux.
• Launched a new kitchen with several new, advanced technologies, setting the stage for advanced culinary innovation in the cannabis industry: The expanded space will be dedicated to producing a diverse range of new products, with a focus on gummies, to position the company as a top producer of edibles within the New Jersey market.
• Scaled packaging and processing infrastructure and implemented new automation technologies to unlock increased efficiencies while maintaining the company's dedication to rigorous standards of quality control and compliance: The upgrades, which have been seamlessly integrated into the existing operations, are expected to significantly enhance the company's output, enabling its products to reach the highly demanding market more rapidly.

About Acreage Holdings Inc.

Acreage is a multistate operator of cannabis cultivation and retailing facilities in the United States, including the company's national retail store brand, The Botanist. With its principal address in York, Acreage's wide range of national and regionally available cannabis products include the award-winning brands The Botanist and Superflux, the Prime medical brand in Pennsylvania, and others. Since its founding in 2011, Acreage has focused on building and scaling operations to create a seamless, consumer-focused and branded experience.

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