Connect with us

Hi, what are you looking for?

Tuesday, Dec 5, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Curaleaf Holdings acquires medical cannabis firm Deseret Wellness for US$20M

The amount of medical cannabis patients in Utah increased by 51 per cent last year

Curaleaf Holdings acquires Utah medical cannabis supplier for US$20M
Photo via Deseret Wellness

Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) is set to expand its footprint in the medical cannabis market with the acquisition of Deseret Wellness, one of Utah’s leading cannabis suppliers, for approximately US$20 million in cash and stock.

The deal announced on Wednesday is expected to be completed shortly, positioning Curaleaf for further growth in the rapidly-evolving cannabis industry.

Through the deal, Curaleaf will be obtaining three retail locations from Deseret and expanding its retail footprint to include a total of four dispensaries in Utah.

Patient presents his ID at a Deseret Wellness dispensary. Photo via Deseret Wellness

Read more: Shoppers Drug Mart hands its medical cannabis business over to Avicanna

Read more: Entourage Health launches new CBD-infused gum

The dispensaries acquired from Deseret are located in Park City, Payson and Provo and generate approximately US$14 million annually.

“Deseret has built a strong and profitable business, and we believe the combination of our two companies will enhance our competitive position in the Utah market,” said Curaleaf’s CEO Matt Darin.

“This deal represents the largest cannabis retail change of ownership in the state’s history and bolsters our strong position in the market with an attractive portfolio of retail assets,” said Boris Jordan, Curaleaf’s Executive Chairman.

Prior to the impending Utah acquisition, Curaleaf significantly expanded its retail presence in Nevada and Arizona last October when it acquired six stores from Reef Dispensaries for US$181 million.

In September 2022, Curaleaf expanded its international presence by acquiring a 55 per cent stake in the German cannabis company Four 20 Pharma. Curaleaf is set to acquire the remaining 45 per cent early next year.

Utah opened its first medical cannabis dispensary in Salt Lake City in 2020 and the state is yet to legalize adult use/recreational pot. Currently, possession of small amounts in the state without a license can result in a misdemeanour offense.

Curaleaf’s stock dropped by 2 per cent Thursday to $3.93 on the Canadian Securities Exchange and has been on a steady decline since March 7 when it was worth $5.31.


Follow Mugglehead on Twitter

Like Mugglehead on Facebook

Follow Rowan Dunne on Twitter






Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Once production resumes by the end of next year, Lance will become the largest producer of U3O8 in the U.S.

Alternative Energy

The U.S. aims to reduce reliance on 'foreign entities of concern'

Alternative Energy

A company representative said during a conference that it is currently offering debt financing for brown or green field projects


Ninety per cent of U.S. Veterans who use cannabis say it improves their overall quality of life, according to a recent study