Seeking additional vertical integration in Nevada, Curaleaf Holdings, Inc. (CSE: CURA; OTCQX: CURLF) this week entered an agreement to acquire Las Vegas-based cultivator Acres Cannabis in a cash and stock deal.
The terms of the acquisition see Curaleaf paying $25 million directly in addition to providing stock valued at $45 million, with a bonus to be paid if Acres manages to hit undisclosed financial milestones in the months after the deal is completed.
Acres currently runs a nationally renowned dispensary in Las Vegas that includes a marijuana history museum, weekly cannabis farmers market, and a 24/7 buying experience with online buy-ahead options.
Commenting on the planned acquisition, Curaleaf’s Chief Executive Officer Joseph Lusardi issued this statement:
Upon closing of the deal later this year, the Acres dispensary will see a re-branding under the Curaleaf name. Aside from that existing dispensary, Acres is currently focused on two major construction projects, with a second dispensary in Ely, Nevada and a second cultivation facility both in the works.
When that cultivation expansion project is finished, Acres will add a cumulative 400,000 sq. ft. of grow space capacity to the Curaleaf brand, with an estimated 100,000 pounds of dried flower product to be produced annually. That milestone will see a significant increase in current operations, with Acres harvesting 5,000 pounds during Q4 2018.
Nevada is just the latest state to see expansion efforts from Curaleaf, with the company opening dispensaries in New York and Florida in recent months as well.
At the end of February, Curaleaf additionally signed an agreement to acquire California-based cultivator Eureka Investment Partners, LLC. The cash and stock Eureka deal was valued at $30.5 million.
The company is also gearing up to release Q4 financial results after close of market tonight, March 20. A webcast and conference call will be held after end of business today to discuss those results with shareholders.