Curaleaf Closes $1.1 Billion Acquisition of Grassroots
Curaleaf Holdings (CSE: CURA) announced this morning that it has finally completed its acquisition of GR Companies, operating as Grassroots, which the firm claims creates the largest cannabis operating in the United States. The transaction was completed as of this morning, July 23.
The completion of the transaction increases Curaleaf’s operations from 18 to 23 US states. Further, the company now owns 135 dispensary licenses, of which only 88 are operational, along with 30 processing facilities and 22 cultivation sites. The expanded footprint is said to increase their exposure to more than two thirds of the US population.
With the close of the transaction, Curaleaf also claims that it will have a leading presence in approximately 13 markets overall, including Illinois and Pennsylvania. However, numerous assets are in the status of being “in transfer”, such as the retail assets within Illinois. This is largely the function of restrictions in terms of hold periods, as well as the simple fact of dealing with government bureaucracy.
In connection with the completion of the transaction, which cost shareholder of the company dilution to the tune of nearly 119 million shares, Michael Kahn, co-founder and CEO of Grassroots, has been appointed to the Board of Directors of Curaleaf.
Curaleaf Holdings last traded at $9.59 per share on the CSE, placing the value of the transaction at roughly $1.1 billion.
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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.