Connect with us

Hi, what are you looking for?

Thursday, Oct 21, 2021
Mugglehead Magazine
Cannabis & psychedelics industry news based in Vancouver, B.C.
  • Loading stock data...

Business

Curaleaf now owns Colorado’s biggest outdoor grower

The leading American pot firm has completed its reported US$67M-acquisition of Los Sueños Farms

Curaleaf now owns Colorado's biggest outdoor grower
Los Sueños Farms operates three outdoor cannabis farms in Pueblo, Colorado. Press photo

With its acquisition of Los Sueños Farms, Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) has made its dreams of acquiring Colorado’s largest outdoor grower come true.

On Monday, the multistate operator said it completed the acquisition of Los Sueños and its related entities in a cash and stock deal estimated at US$67 million.

The transaction, announced in May, gives Curaleaf vertical integration in Colorado and significantly strengthens its market presence in the country’s second largest cannabis economy, executive chairman Boris Jordan said in a statement.

Read more: Curaleaf cuts US$67M deal for outdoor Colorado grow

“This deal provides Curaleaf with a high-quality, efficient, and low-cost supply of biomass to support our wholesale and retail customers in Colorado and, once interstate commerce is allowed, on a regional scale,” he said. “Overall, our newly expanded cultivation capacity will allow us to better serve Colorado’s US$2.2 billion annual cannabis market opportunity.”

As it completes the deal, Curaleaf says it gains three Pueblo, Colorado outdoor cannabis grow facilities covering 66 acres of cultivation capacity including land, equipment and licensed operating entities; an 1,800-plant indoor grow; and two cannabis stores serving adult-use customers.

The additional biomass will be used to fuel the company’s Select brand in Colorado, which it says already leads the market there and is distributed to nearly 2,000 stores across 18 states.

The company expects the deal will add 50,000 pounds (22,680 kilograms) in annual low-cost production. Curaleaf says it intends to double production with the targeted goal of US$100 a pound (US$0.22 per gram) at the open-air cultivation site.

Los Sueños founder Bob DeGabrielle will continue to oversee the operation, as well as take responsibility for Curaleaf’s Colorado wholesale and retail business.

“By leveraging the outdoor grow expertise of the talented Los Sueños team, we will optimize our new outdoor scale and cultivation technologies to lower our total cost of delivery, with the genetics that we perfect there serving as a center of excellence for all our future U.S. outdoor cultivation capabilities,” Curaleaf CEO Joseph Bayern said.

The firm is one of the largest weed companies in America, operating in 23 states with 109 dispensaries, 22 cultivation sites and over 30 processing sites employing over 5,000 people.

Curaleaf stock fell around 5 per cent Monday to $14.45 on the Canadian Securities Exchange.

 

Follow Mugglehead on Twitter

Like Mugglehead on Facebook

Follow Nick Laba on Twitter

nick@mugglehead.com

Click to comment

Leave a Reply

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

You May Also Like

Health and Safety

Science doesn't know yet, but one psychedelic researcher is chasing clues to see if it can

Canada

As more medium-to-small producers came into play this year, great weed started hitting legal shelves at fairer prices

Analysis

While legal weed businesses decry enforcement of their accounts, the platform says it's keeping its all-ages community safe

Culture

Punishments for possession include caning and the death penalty. Despite a global trend of reform, The Fine City remains staunch in its anti-drug stance