Massachusetts-based cannabis company Curaleaf Holdings said it has completed its acquisition of privately-held multi-site cannabis operator GR Companies, Inc. or Grassroots.
The transaction expands Curaleaf’s presence from 18 to 23 states in the U.S., with the combined company having operations spanning over 135 dispensary licenses, 88 operational dispensary locations, over 30 processing facilities and 22 cultivation sites with 1.6 million square feet of current cultivation capacity.
In July 2019, Curaleaf said it agreed to acquire Chicago-based Grassroots for about $875 million in cash and stock. However, the deal was amended in June this year.
Curaleaf noted that its expanded presence following the acquisition will offer access to medical or adult-use cannabis to more than 192 million people, or roughly two-thirds of the U.S. population.
The transaction enables Curaleaf’s expansion into Illinois and Pennsylvania, which are among the largest and fastest-growing cannabis markets in the U.S. In June 2019, Illinois became the eleventh state to legalize adult-use cannabis, while Pennsylvania is the fifth most populous state in the U.S.
Curaleaf said that Grassroots’ cultivation and processing assets in Illinois have been transferred to the company and it expects the formal approval to transfer certain retail assets to occur imminently.
Meanwhile, the Maryland operations previously affiliated with Grassroots might be transferred to Curaleaf after the expiry of the statutory hold period. The transfer is subject to regulatory approval as well as compliance with restrictions on ownership or control of multiple cultivation, processor and dispensary licenses in the Maryland.
In addition, Curaleaf has appointed Mitchell Kahn, co-founder and CEO of Grassroots, to its board of directors with immediate effect. Kahn’s appointment expands the Curaleaf board of directors from five to six members.
Curaleaf said earlier in July that it closed the acquisition of Virginia’s Kitchen dba BlueKudu, a Colorado-based producer of premium cannabis chocolates and gummies. The acquisition enables Curaleaf to enter the Colorado market, the second largest cannabis market in the U.S.
Curaleaf closed the acquisition of Cura Partners, owner of the Select Brand, in February this year. According to reports, the deal closed at a lower value after the fall in cannabis stock prices and lower company valuations.
Source: Read Full Article