Curaleaf Supersizes Its Maryland Operations

 Curaleaf Holdings, Inc. (CSE: CURA, OTCQX: CURLF) sells a pair of planned asset divestitures in Maryland for a combined $31.5 million in total proceeds as the company looks to supersize its Maryland operations. The company announced that it sold its interests in the smaller HMS cultivation and processor for $27.5 million to TerrAscend Corp. (CSE:TER, OTCQX: TRSSF). Instead, Curaleaf wants to buy Maryland Compassionate Care and Wellness, LLC, which operates a 55,000 square foot co-located cultivation and processing facility in Taneytown, MD, and a dispensary in Gaithersburg, MD under the Herbology brand. The company also closed its sale of a Cumberland, MD processor for $4.0 million. 

“The asset sales we announce today will allow us to optimize Curaleaf’s vertically integrated presence in Maryland within the regulation which limits operators to a single grow and single processor,” said Joseph Lusardi, Chief Executive Officer of Curaleaf. “Overall, the Maryland market continues to see impressive growth with over 115,000 certified cannabis patients. The actions we are taking aim to further strengthen Curaleaf’s position as a leading cannabis operator in Maryland as well as reaffirm our commitment to best serving our customers across the state.”

Transaction Details

Curaleaf sold its rights to the HMS Health LLC and HMS Processing LLC in Maryland to TerrAscend for a total consideration of $27.5 million. The company said that the HMS asset sale included the divestiture of operations in a 22,000 square foot co-located cultivation and processing facility in Frederick, MD. The deal includes $25 million in cash due at closing as well as a $2.5 million interest-bearing note due and payable to Curaleaf on April 30, 2022. The transaction is expected to close pending customary closing conditions, including regulatory approval by the Maryland Medical Cannabis Commission.

Curaleaf also sold Curaleaf Maryland, Inc., which holds a processing license in Cumberland, MD, for $4.0 million. This divestiture closed on November 1, 2020, and supports Curaleaf’s strategy for optimizing its vertically integrated presence in Maryland. Curaleaf currently operates in 23 states with 95 dispensaries, 23 cultivation sites, and over 30 processing sites, and employs over 3,000 team members across the United States.

 

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