Wednesday, July 2, 2025

Curaleaf Amends Terms of Grassroots Acquisition

Nearly a year after the initial announcement, Curaleaf Holdings (CSE: CURA) this morning announced that it has signed an amended agreement for the acquisition of Grassroots. The amended arrangement essentially eliminates any cash component from the transaction.

Under the new agreement, Curaleaf will see 102.8 million subordinate voting shares issued in conjunction with the agreement, as per the original terms of the arrangement. What has effectively been modified, is that a $75 million cash component has been removed from the transaction to enable Curaleaf to further optimize its use of cash.

In lieu of the cash component being dropped, additional shares under the component related to additional shares being issued has been modified. Originally, Curaleaf was to issue $40 million worth of subordinate voting shares to Grassroots based on the 10-day volume weighted average price of the equity prior to closing. That figure has now been inflated to $90.1 million, with the company now estimating that a total of 118.9 million common shares will be issued as a result of the transaction, valuing Grassroots at approximately C$928 million based on the latest price of the equity. On a pro-forma basis the transaction will see Grassroots own approximately 18% of Curaleaf.

Further, certain Grassroots assets located in the states of Illinois, Ohio and Maryland will be put up for sale after closing as a result of ownership restrictions within those states.

The transaction with Grassroots is expected to close “upon completion of certain pre-closing conditions within the coming weeks.”

The acquisition of the firm is said to expand Curaleaf’s operations to 23 states from 18, with a total of 135 dispensary licenses, 88 of which are operational. The combined company will also have over 30 processing facilities and 22 cultivation sites.

Curaleaf Holdings last traded at $7.89 on the CSE.


Information for this briefing was found via Sedar and Curaleaf Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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