Curaleaf Announces Divestitures in Maryland for $ 31.5 Million
WAKEFIELD, Mass., November 6, 2020 / PRNewswire / – Curaleaf Holdings, Inc. (CSE: CURA, OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading vertically integrated cannabis operator in United States, today announced a pair of asset disposals scheduled for Maryland for a handset $ 31.5 million total revenue:
- Enter the final documentation to sell Curaleaf’s interests in culture and the HMS processor for $ 27.5 million at TerrAscend Corp. (“TerrAscend”) (CSE: TER, OTCQX: TRSSF)
- Closing of its sale of Cumberland, Maryland processor for $ 4.0 million
Curaleaf today announced that it has entered into a definitive agreement for the sale of its rights to the assets of HMS Health LLC and HMS Processing LLC (“HMS”) in Maryland to TerrAscend for full consideration of $ 27.5 million. The sale of HMS assets includes the divestiture of the operations of a 22,000 square foot co-located growing and processing facility to Frédéric, MD. The total consideration due to Curaleaf of $ 27.5 million includes $ 25 million in cash due at closing as well as a $ 2.5 million interest-bearing Note due and payable to Curaleaf on April 30, 2022. The transaction is expected to close pending customary closing conditions, including regulatory approval from the Maryland Medical Cannabis Commission.
Completion of the HMS transaction will allow Curaleaf to move forward, subject to regulatory approval, with its proposed acquisition of Maryland Compassionate Care and Wellness, LLC (“MCCW”), which operates a co-located cultivation and processing of 55,000 square feet at Taneytown, Maryland and a dispensary in Gaithersburg, MD under the brand Herbology.
Curaleaf is also pleased to announce today the closing of its sale of Curaleaf Maryland, Inc., which holds a license to convert into Cumberland, Maryland, for full consideration of $ 4.0 million. This sale was closed on November 1, 2020 and supports Curaleaf’s strategy to optimize its vertically integrated presence in Maryland.
Joseph Lusardi, Chairman and CEO of Curaleaf, said: “The asset sales we are announcing today will allow us to optimize Curaleaf’s vertically integrated presence in Maryland within the framework of the regulations which limit the operators to a single crop and a single processor. Overall, the Maryland the market continues to experience impressive growth with over 115,000 cannabis certified patients. Our actions aim to further strengthen Curaleaf’s position as a leading cannabis operator in Maryland as well as reaffirming our commitment to better serve our customers across the state. ”
About Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf”) is the leading vertically integrated multi-state cannabis operator in the United States with a mission to improve lives by providing clarity on the cannabis and trust around consumption. As a high growth cannabis company known for its quality, expertise and reliability, the company and its brands, including Curaleaf and Select, provide industry leading service, product selection and accessibility in the markets. medical and adult use. Curaleaf currently operates in 23 states with 95 dispensaries, 23 culture sites and more than 30 processing sites, and employs more than 3,000 team members across United States. Curaleaf is listed on the Canadian Stock Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF. For more information, please visit www.curaleaf.com.
This media advisory contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “”, or variations thereof, or by the use of words or phrases indicating that certain actions, events or results may, could, would or could occur or be achieved.In particular, and without limitation, this press release contains forward-looking statements and information regarding the planned divestiture of certain assets in Maryland, which are dependent on the closing of the respective transactions and obtaining regulatory approval for them. These forward-looking statements and information reflect the current beliefs of management and are based on assumptions made by the company and on information currently available with respect to the matter described in this new press release. Forward-looking statements involve risks and uncertainties, which are based on current expectations as of the date of this press release and are subject to known and unknown risks and uncertainties which could cause actual results to differ materially from those expressed or implied. by such statements. . . . . Additional information on these assumptions and these risks and uncertainties is contained in the section “Risk factors and uncertainties” in the last annual information form of the Company filed. September 25, 2020, which is available under the Company’s SEDAR profile at http://www.sedar.com, and in other documents that the Company has filed and may file with the relevant securities authorities in the future. The forward-looking statements contained herein are made only as of the date of this press release and we assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. We caution investors not to place significant reliance on any forward-looking statements contained in this press release. The Canadian Securities Exchange has not reviewed, approved or disapproved of the contents of this press release.
Curaleaf Holdings, Inc.
Dan Foley, Vice-President, Finance and Investor Relations
Curaleaf Holdings, Inc.
Tracy brady, Vice President of Corporate Communications
SOURCE Curaleaf Holdings, Inc.