After opening two new Florida dispensary locations back in March, Curaleaf Holdings, Inc. (CSE: CURA; OTCQX: CURLF) is looking toward Ohio expansion with the acquisition of medical cultivation entity Ohio Grown Therapies (OGT).
Curaleaf signed a definitive agreement this morning featuring an option to acquire OGT’s cultivation facility as well as the preliminary processing licenses that were granted by the Ohio Department of Commerce last year.
Under the terms of the agreement, the option allows Curaleaf to pay $20 million for both the licenses and the facility located in Johnstown, Ohio. The payout stipulates a series of milestones to be met first, such as local regulatory approval for the license to be transferred from OGT to Curaleaf.
That approval and the close of the deal is expected to arrive in the second half of the year, at which point Curaleaf will take over the 32,000 sq. ft. facility, which is currently being expanded. At the end of the current construction phase, Ohio Grown Therapies estimates the facility will operate 15,000 sq. ft. for direct cultivation of product, with another 7,000+ for processing and distribution.
Regarding the impending greenhouse acquisition, Curaleaf Holdings Chief Executive Officer Joseph Lusardi commented:
This is the latest in a string of multi-million dollar acquisitions Curaleaf has announced in recent months, with the company making a larger presence in Nevada through a $70 million cash and stock deal to acquire Acres Cannabis.
That deal sees Curaleaf acquiring the famous Acres cannabis history museum and dispensary in Las Vegas, which will be re-branded under the Curaleaf name.
Earlier this month, the company additionally entered an agreement to acquire Cura partners for just under $1 billion, which gives Curaleaf access to the Select brand of THC products. That deal does not include the CBD assets, however, with Curaleaf focused on their own established hemp brand instead.