Curaleaf Holdings Inc (CSE: CURA) announced today that it had signed a series of acquisition agreements that will expand its operations in Maryland as well as expose its product to patients in the state. The agreements include a $30 million takeover of HMS Health, HMS Processing, HMS Sales and MI Health, along with a separate $2 million agreement to acquire Town Center Wellness (also known as Elevate Takoma).
The HMS/MI group of businesses include a 21,000 square-foot grow facility, a 1,000 square foot processing plant, and two separate 1,000 square foot dispensaries. These assets will be completely rebranded under Curaleaf. Elevate Takoma operates a 1,500 square foot dispensary in a key location in Takoma, Maryland.
“Curaleaf has operated in Maryland for nearly a year and we have seen a significant amount of interest in medical cannabis in the state. Ultimately we’re about creating greater accessibility and affordability for patients,” said Joe Lusardi, Curaleaf CEO. As a trusted multi-state operator, we believe that we’re well suited to help more patients gain access to critical medicine and these deals will help to achieve those ends.
Current restrictions in Maryland state law prevent the change of control over cannabis licenses within a company’s first two years of operating, so the agreement with HMS/MI are convertible in parts between August 2019 and October 2020 due to the different operating dates of each subsidiary company. Elevate Takoma’s agreement will also be exercisable in August 2020. Another regulatory hurdle for Curaleaf is that Maryland law prevents the firm from owning equity in more than one cannabis business in each part of the supply chain (cultivation, processing, and retail). As such, Curaleaf still faces regulatory approval before the conversions can be fully completed.
Reneta Gorman, president of Elevate Takom, went on to say that launching a new medical cannabis business is quite expensive, and that partnering with a more established brand in the industry will let her retail location offer medical products at cheaper costs then if she operated independently.
“Curaleaf has the years of knowledge, resources and capital that are necessary for a cannabis dispensary to be a success,” added Gorman. “They will be able to scale Elevate Takoma so that it cannot only survive, but thrive in an underserved community that relies on us to provide medical cannabis at affordable prices.”
Shares of Curaleaf Holdings didn’t react much to the news, ending the day only 2.5 percent higher than when it began.
Curaleaf Holdings Company Profile
Curaleaf Holdings, Inc. (CSE: CURA) (OTCBB: CURLF) is the parent of Curaleaf, Inc., a leading vertically integrated cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, Curaleaf has a presence in 12 states. Curaleaf operates 42 dispensaries, 12 cultivation sites and 10 processing sites with a focus on highly populated, limited license states, including Florida, Massachusetts, New Jersey and New York. Curaleaf leverages its extensive research and development capabilities to distribute premium cannabis products in multiple formats with the highest standard for safety, effectiveness, consistent quality and customer care. Curaleaf is committed to being the industry’s leading resource in education and advancement through research and advocacy. – Curaleaf