Curaleaf Closes Acres Cannabis Purchase
Curaleaf Holdings (CSE: CURA) has finally completed its acquisition of Acres Cannabis of Nevada. The transaction consisted of two stages, with the firm previously closing the acquisition of the firms cultivation and processing assets back in October 2019. As of January 1, Curaleaf has also closed on the acquisition of the operators flagship Nevada dispensaries.
Two retail locations were included in the acquisition of Acres Cannabis, with one being located in Ely, Nevada, while the flagship dispensary is located in Las Vegas. The former is expected to open in the second quarter of 2020, while the latter is already in operation. Curaleaf now has two operational cultivation facilities, two processing sites and two dispensaries within the state.
Including the previously closed on cultivation and processing facility, Acres Cannabis was purchased for a total sum of US$70 million. $25 million of which was paid in cash. $45 million is to be paid in stock, while the remaining portion is subject to undisclosed performance targets. The original transaction was announced on May 18, with Acres being identified as being the largest cultivation facility in the state.
At time of announcement, the dispensaries were expected to be branded as Curaleaf by the end of 2019. It’s not clear at this time if this transition has already occurred.
Curaleaf Holdings last traded at $7.98 on the TSX.
Information for this briefing was found via Curaleaf Holdings. The author has no securities or affiliations related to the discussed organizations. 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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