Curaleaf Holdings Inc. CURLF, +4.81% CURA, +4.31% said Monday it has reached a deal to acquire Los Sueños Farms, the biggest outdoor cannabis grow in Colorado, for $67 million in cash, stock and assumed debt. The company will pay $49 million for the Los Sueños operating companies and $18 million for the real estate and farm assets. The price will be paid 61% in Curaleaf subordinate voting shares, 29% in cash at closing and 10% in assumed debt maturing in five years. An additional consideration of $8 million in stock will be paid based on operating cash flow-based targets for 2022. “This will significantly expand Curaleaf’s Colorado presence, vertically integrating in the state with large-scale outdoor cannabis cultivation,” said Curaleaf, which is based in Wakefield, Massachusetts. The deal involves three outdoor grow facilities covering 66 acres of cultivation capacity, an 1,800 plant indoor grow and two retail cannabis dispensary locations offering adult-use recreational cannabis. Curaleaf shares were slightly higher premarket and have gained 20% in the year to date, while the AdvisorShares Pure US Cannabis ETF MSOS, +0.12% has gained 11%, matching the S&P 500’s SPX, -0.09% gain.
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