Curaleaf Completes Purchase Of ATG's Massachusetts Facilities, Sells Maryland Assets
Cannabis company Curaleaf Holdings Inc. (OTCQX:CURLF) finalized the purchase transaction of Alternative Therapies Group's licensed cultivation and processing facility in Amesbury, Massachusetts.
Expanding its Cultivation Operations in Massachusetts
The acquisition agreement, confirmed Thursday, was first signed back in August of 2018. Last month, Curaleaf gained approval from the Massachusetts Cannabis Control Commission to close the deal.
With this addition of 53,600 square foot cultivation and processing facility, Curaleaf now runs 157,600 square feet of cultivation operations in Massachusetts.
The Wakefield, Massachusetts-based cannabis company is now said to be the only cannabis operator in the state with two adult-use cultivation licenses, two adult-use processing licenses, and the maximum-allowed three adult-use dispensary licenses.
Relating to the purchase, Alternative Therapies Group's dispensaries based in Salem, Salisbury, Amesbury, have been “spun off” and will further run as part of the Alternative Therapies Group's brand.
"With the acquisition of ATG's grow and processing operations, we'll be adding 53,600 square feet of capacity to our existing 104,000 square feet capacity in Massachusetts," Curaleaf CEO Joseph Lusardi stated. "The Amesbury facility is fully built out, operational, and will be immediately accretive to our production capabilities in Massachusetts, which, according to Cannabis Benchmarks, currently commands the second highest wholesale flower prices in the nation."
“Optimizing It’s Vertically Integrated Presence in Maryland”
Separately, Curaleaf also disclosed Friday a couple of asset divestitures in Maryland for a total of $31.5 million in proceeds.
The company announced it has signed definitive papers to sell its interests in HMS cultivation and processor in Maryland for $27.5 million to TerrAscend Corp. (OTCQX:TRSSF). This consideration consists of $25 million in cash and a $2.5 million interest bearing Note, due and payable to Curaleaf in 2022.
The transaction will get completed once all the requirements, such as regulatory approval by the Maryland Medical Cannabis Commission are collected. Once finalized, it will enable Curaleaf to further prepare for the planned purchase of Maryland Compassionate Care and Wellness, LLC that runs cultivation and processing facility in Taneytown, and a dispensary in Gaithersburg.
Additionaly, Curaleaf reported it has sold Curaleaf Maryland Inc. that owns a processing license in Cumberland for $4 million.
“The asset sales we announce today will allow us to optimize Curaleaf's vertically integrated presence in Maryland within the regulation which limits operators to a single grow and single processor," Lusardi said. "Overall, the Maryland market continues to see impressive growth with over 115,000 certified cannabis patients. The actions we are taking aim to further strengthen Curaleaf's position as a leading cannabis operator in Maryland as well as reaffirm our commitment to best serving our customers across the state."
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