Curaleaf Holdings (CSE: CURA) is looking to become the largest Colorado cannabis cultivator, announcing this morning that it has entered into an agreement to acquire the Los Suenos Farms and related entities. The transaction as a whole is pegged at $67 million.
The acquisition will see the company acquire three outdoor cannabis cultivation facilities within the state, with a total of 66 acres of cultivation currently in place in aggregate. The purchase will include the land, equipment, and licensed operating entities at the facilities. Also included in the transaction is a small indoor operation capable of growing 1,800 plants, as well as two cannabis dispensaries.
The transaction is pegged at $67 million in total, with $18 million in compensation related to real estate and farm assets, while $49 million is related to the operating companies. Earn out arrangements of up to $8 million are also included in the transaction. Consideration is to be paid 61% in stock, 29% in cash, and 10% in five year debt that is assumed, which breaks out to $40.9 million in stock, $19.4 million in cash, and $6.7 million in assumed debt.
The purchase is reportedly being justified based on the theory that it will position the company “for interstate commerce when it comes.”
The transaction is expected to close upon regulatory approvals.
Curaleaf Holdings last traded at $17.43 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.
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.