Massachusetts-based Curaleaf Holdings, Inc. (CSE: CURA; OTCQX: CURLF) today announced a move towards further operations in Nevada, where adult use recreational marijuana has been legal since early 2017.
Originally announced back in March, the acquisition of a cultivation site from Acres Cannabis officially closed today. That deal includes both 269,000 sq. ft. of grow space as well as a connected processing lab in Amargosa Valley.
While that acquisition has closed, Curaleaf is still moving through final regulatory hurdles to additionally snap up a dispensary in Ely, Nevada from Acres, as well as a processing site and dispensary in Las Vegas.
That second portion of the transaction is currently on track to complete by the end of 2019. Curaleaf Chief Executive Officer Joseph Lusardi commented on the new company assets:
With the cannabis industry in a downward revenue trend over the past six months, expansions and acquisitions have continued at a slower pace and with frequently renegotiated terms.
Aside from the Acres assets acquisition, earlier this week Curaleaf issued significantly amended conditions for the company’s planned pickup of the Select brand.
Formerly valued at C$1.27 billion, that deal has now been culled by more than 40%, with the original 95.5 million shares to be issued trimmed down to 55 million. The remainder of the previously agreed upon shares will now only be issued if performance milestones are met after the acquisition closes.
Those amended terms arrive as licensed producers in both the U.S. and Canada continue to report high losses and lower than expected revenues that have seen stock prices tank since the spring.
Like several other cannabis companies in recent months, Curaleaf just saw a major insider stock purchase as the company attempts to project confidence in future operations, with Executive Chairman Boris Jordan buying 100,000 shares in early October.
Despite the move, CURLF has continued to drop in price, trading at $4.64 this morning compared to $5.50 this same time last month.
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