At a time that most cannabis operators are cutting back operations in an effort to achieve profitability, Curaleaf Holdings (CSE: CURA) appears to be forging forward with an expansion strategy. The cannabis firm this morning revealed that it has entered into an arrangement with Clever Leaves (NASDAQ: CLVR) to acquire certain Portugese assets.
The asset to be acquired consists of an EU-GMP certified cannabis processing facility found in Setubal, Portugal. The facility measures out at over 900 square meters of GMP factory space and an additional 750 square meters of warehouse space.
Curaleaf has indicated that it will use the space to process flower it grows at its facility in Alcochete, Portugal. The purchase is expected to streamline operations in the region, and “accelerate the seed to sale process.”
READ: Curaleaf Q1 2023 Financials: Higher Revenue, Lower Margins, Wider Losses
“By streamlining our production processes and expanding our cultivation capabilities, Curaleaf International is setting the stage for responsible, robust growth over the next few years as cannabis adoption accelerates across Europe,” commented Matt Darin, CEO of Curaleaf.
The assets were acquired in a cash deal by Terra Verde, a subsidiary of Curaleaf. The purchase price, as per Clever Leaves, amounted to €2.5 million, and includes all leasehold improvements, currently installed equipment, and system procedures.
“Closing the sale of our Portuguese processing assets represents an important next step in the wind-down of our Portuguese operations, while consolidating our cultivation and manufacturing processes in our EU-GMP certified facilities in Colombia,” stated Clever Leaves CEO Andres Fajardo.
The asset sale follows an announcement by Clever Leaves in January that it is winding down its operations in Portugal as part of a restructuring initiative.
Curaleaf last traded at $4.20 on the CSE.
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