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Saturday, Dec 3, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

Curaleaf acquires Reef Dispensaries in Nevada and Arizona for US$181M

With the acquisition, it will expand its presence in Las Vegas, Sparks and Sun Valley, Nevada and in Phoenix, Arizona. 

Curaleaf acquires Reef Dispensaries for US$181M
Photo via Reef dispensary

 Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) is adding six new pot shops to its operations after completing the acquisition of Tryke Companies which does business as Reef Dispensaries.

On Wednesday, the leading cannabis company announced that with the acquisition it will expand its presence in Las Vegas, Sparks and Sun Valley, Nevada and in Phoenix, Arizona.

Under the agreement, Curaleaf will pay a total of US$181 million with an initial payment of US$10 million in cash and $2.7 million in shares. The remaining will be paid with $75 million and 16.5 million subordinate voting shares to be paid in three installments at anniversaries of the closing.

With the acquisition, the company will add 30,000 square feet of cultivation which says it aims to expand to 80,000 over the next three years.

Read more: Curaleaf completes acquiring German pot producer Four 20 Pharma

Read more: Curaleaf launches new health and wellness brand

“We are pleased to welcome Tryke to the Curaleaf family as we expand our operations and bolster our competitive position in three key growth markets,” Curaleaf founder Boris Jordan said.

“This strategic transaction expands our U.S. presence and yields meaningful benefits for all of our stakeholders. The acquisition is immediately accretive to our EBITDA margins and free cash flow generation.”

Curaleaf CEO Matt Darin said that the company is excited to join forces with Tryke to deliver additional value for our customers and retailers in ArizonaNevada and Utah.

“This deal represents a significant opportunity with strong long-term growth potential, and we are now strategically positioned us to accelerate our growth in the West.”

 

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