Trulieve Enters Pennsylvania Market With Two Transactions, Announces C$100.5 Million Financing

Trulieve Cannabis Corp (CSE: TRUL) appears to be focused on expansion. The company this evening has announced that it has stepped foot into the Pennsylvanian market, with the acquisition of two firms – one, a cultivator and a producer, and the other a dispensary operator with three operational dispensaries in the Pittsburgh area.

The first acquisition is that of PurePenn LLC and Pioneer Leasing and Consulting LLC, collectively known as PurePenn. The cultivator currently operates a 35,000 square foot facility with a currently planned expansion to 90,000 square feet by the first quarter of 2021. The company currently has a 100% wholesale revenue model, while distributing to private and public cannabis operations.

The second acquisition is that of Keystone Relief Centers LLC, whom operators under the banner of Solevo Wellness. The company currently has three operational dispensaries, bringing Trulieve’s nationwide total to 60 operational dispensaries. While only medical cannabis is permitted in the state currently, the market is estimated to grow to US$575 million by the end of the year. Only 87 dispensaries are currently operational in the state.

Trulieve has agreed to purchase PurePenn for an initial price of $46 million, of which $27 million is to be paid via subordinate voting shares, while $19 million is to be paid in cash. Potential earn out payments of up to $60 million are also included in the transaction.

Solevo Wellness meanwhile has been acquired for US$20 million, split equally between cash and shares. Earn out payments of up to $15 million also potentially exist as part of the transaction.

Both transactions are expected to close in the fourth quarter of 2020.

The announcement of the transaction was followed up with the news that the company will be conducting a C$100.5 million financing at a price of $24.50 per share. The financing will see a total of 4,100,000 subordinate voting shares sold, with proceeds to be used to fund business development and general working capital. No warrant is included within the financing.

Trulieve Cannabis Corp last traded at $26.98 on the CSE.


Information for this briefing was found via Sedar and Trulieve Cannabis Corp. 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.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

Trulieve Expands Footprint In West Virginia With $6 Million Acquisition

Trulieve Cannabis (CSE: TRUL) is expanding its presence in West Virginia. The company this morning...

Monday, March 22, 2021, 07:16:01 AM

Canaccord Names Trulieve, Ayr Wellness Among 2022 Top Picks

On December 14th, Canaccord Genuity released their top picks going into 2022, with names like...

Thursday, December 16, 2021, 03:35:00 PM

Trulieve Loses Foreign Private Issuer Status, Must Transition To US GAAP Reporting Standards

Evidently, recent buying activity in Trulieve Cannabis Corp (CSE: TRUL) has come largely from South...

Tuesday, July 14, 2020, 09:16:53 AM

Trulieve: Analysts Expect Beat On Company Full Year Guidance

Trulieve Cannabis (CSE: TRUL) announced that they will be reporting their fourth quarter and year-end...

Friday, March 5, 2021, 10:37:00 AM

US Cannabis: Earnings Preview For The Oncoming Fourth Quarter Results

March is turning out to be a busy month in public cannabis, with many of...

Monday, March 8, 2021, 04:10:00 PM