Curaleaf Partially Closes Acquisition of Acres Cannabis
Curaleaf Holdings (CSE: CURA) has partially completed its acquisition of Nevada-based Acres Cannabis. The acquisition, which was originally announced in March of this year, includes a 269,000 square foot cultivation facility, as well as 3,200 square foot processing lab.
The assets that Curaleaf has closed on are all located in Amargosa Valley, and referred to as the entities cultivation assets. What’s key, is that the entire acquisition of Acres has not been completed, which is not explicitly clear in the headline of the firms news release. Two dispensaries, one in Ely and one in Las Vegas, and a processing facility located in Las Vegas have yet to close as Curaleaf works with regulators.
The dispensary located in Las Vegas is regarded as being the flagship of Acres Cannabis.
The acquisition of the Nevada assets was originally announced March 18, when they indicated that they would be purchasing the Nevada based operator for US$70 million. Included in the purchase price is $25 million in cash, and $45 million to be paid via Curaleaf stock. Additional undisclosed performance targets are available for the assets as well, which may increase the final purchase price.
Acres cultivation is the largest cultivator in the state of Nevada, growing 227,000 square feet of product outdoors, while 42,000 square feet consist of greenhouse space. An additional 133,000 square feet of production capacity is currently under construction. When complete, the facility is expected to produce in excess of 100,000 pounds of cannabis, or approximately 45,300 kilograms.
The final transfer of Acres Cannabis assets is expected to occur before the end of the year as per the company’s news release.
Curaleaf Holdings closed yesterday’s session at $6.83 on the Canadian Securities Exchange.
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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