Curaleaf Holdings, Inc. (CSE:CURA) (OTCQX:CURLF) said it will acquire Colorado-based edibles company BlueKudu for an undisclosed amount.
Founded in 2011, BlueKudu is one of Colorado’s oldest and most experienced edible manufacturers. Known for utilizing high-quality ingredients sourced from Rainforest Alliance Fair Trade Certified Farms, BlueKudu employs culinary experts and an extraction process that provides a cleaner and more natural oil to create artisanal cannabis products with vegan and gluten-free options. The company says it is available in 200 locations.
“Colorado is the second largest cannabis market in the US, with sales surpassing $1.7 billion in 2019,” said Joe Lusardi, Chief Executive Officer of Curaleaf. “With over eight years of operating history, BlueKudu has developed a strong brand for customers seeking premium cannabis products in a diverse range of flavors and formulations. BlueKudu’s established production and distribution capabilities will allow Curaleaf to seamlessly enter the market and expand the Select brand presence in the state of Colorado.”
The acquisition made no mention of BlueKudu’s planned deal with the bankrupt DionyMed (OTC:DYME). Last April, DionyMed said that it had signed a term sheet for an exclusive multi-state distribution and intellectual property licensing agreements with Virginia’s Kitchen, LLC d/b/a Blue Kudu. At that time, the deal was valued at $5.5 million. BlueKudu products were going to be added to the DYME Chill platform, which was that ill-fated company’s product to unseat Eaze delivery service. In turn, Blue Kudu said it would license and distribute DionyMed’s brands to its more than 200 dispensary customers, including the Winberry Farms vape cartridges.
The deal was only described as pending, so with this acquisition, it seems safe to assume it never closed amid the financial problems of DionyMed. In a twist of fate, Eaze acquired DionyMed’s rights to retail licensee Hometown Heart (HTH) depots in Oakland and San Francisco, and now has oversight of HTH’s day-to-day operations. There was also no mention of BlueKudu with regards to that deal.
Through the purchase, expected to close upon regulatory approvals, Curaleaf said it will operate an 8,400 square foot infusion kitchen and processing facility in Denver, CO. The strategic move supports the Company’s planned expansion of its recently acquired Select brand throughout the state of Colorado.
The company produces a combination of edibles from gummies to chocolates and has introduced one cookie that looks very similar to the Girl Scout Thin Mint cookie.