Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) continues to expand its presence in the European Union after buying 55 per cent of a licensed cannabis producer in Germany.
On Tuesday, the Massachusetts cannabis producer announced the acquisition deal via its subsidiary Curaleaf International Holdings Limited. The partnership creates a strategic pathway for Curaleaf to acquire complete control of Four 20 Pharma within two years of the commencement of adult use in Germany. Four 20 Pharma is among the largest German pot operators with a market share of over 10 per cent.
According to the company, Germany is one of the largest medical cannabis markets in Europe with an “addressable” market of over €200 million in 2022 and expected to grow to nearly €1 billion by the end of 2024 via adult-use legalization, which is slated to begin in late 2023 or early 2024.
“By partnering with Four20 Pharma, Curaleaf’s European business will immediately gain additional critical mass and be in a superior position to capitalize on the accelerating trends in the European cannabis market,” CEO Boris Jordan said in a statement.
“Four 20 Pharma is a leading German distributor with a branded product that consumers love,” Curaleaf president Miles Worne said.
“They’ve captured significant market share in Germany by sourcing product from top EU-GMP certified suppliers around the world and building strong connections with German medical consumers by providing the highest quality flower in a namesake branded offering.”
“As such, Four 20 Pharma is uniquely positioned to capitalize on Germany’s conversion from a medical to an adult use market and we’re thrilled to be partnering with their talented management team,” he explained.