Curaleaf Archives - Page 2 of 5 - Green Market Report

StaffApril 7, 2021
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Curaleaf Holdings, Inc. (OTCQX: CURLF) has successfully completed the previously announced acquisition of the European-based EMMAC Life Sciences Limited, a deal valued at approximately $50 million in cash and 17.5 million shares of Curaleaf. Curaleaf has simultaneously established Curaleaf International Holdings Limited in Guernsey to hold the EMMAC investment and further its European expansion.

In order to speed up the process of expanding Curaleaf International, Curaleaf said it has secured an investment of $130 million from a single strategic institutional investor in exchange for a 31.5% equity stake in Curaleaf International, implying a $413 million Post Money valuation, with $80 million in cash available to spend. The company said that the subscription will fund the entire cash portion of the EMMAC acquisition consideration of $50 million with the remaining $80 million to be used to fund Curaleaf International’s current capital expenditures plan through 2022, as well as its pipeline of potential acquisitions.

“The successful completion of our acquisition of EMMAC, and the formation of our new Curaleaf International business, marks a transformational launching point for our entrance into the European cannabis market,” said Boris Jordan, Executive Chairman of Curaleaf. “Building on our market-leading position in the U.S., this transaction establishes Curaleaf as the global, pure play, cannabis market leader by revenue and geographic reach. With our single strategic institutional investor, we have set a strong foundation for Curaleaf International’s future growth trajectory. On behalf of the Curaleaf Board of Directors and management team, we are thrilled to welcome Antonio Costanzo, co-founder, and CEO of EMMAC, as the CEO of Curaleaf International, and the entire EMMAC team to Curaleaf.”

This infusion of outside capital into Curaleaf International significantly accelerates Curaleaf’s expansion plans in Europe by fully funding Curaleaf’s cash outlay for the EMMAC acquisition and providing the capital required to support Curaleaf International’s near-term European rollout. With its foreseeable expansion budget fully funded, Curaleaf’s new international business can focus on executing its further European expansion. Curaleaf and the strategic investor have entered into a shareholders’ agreement regarding the governance of Curaleaf International pursuant to which Curaleaf will have control over operational issues as well as raising capital and the ability to exit the business. In addition, the strategic investor’s stake is subject to put/call rights which permits either party to cause the stake to be bought out by Curaleaf for Curaleaf equity starting in 2025.

“As the consumer and political liberalization trends around cannabis that are sweeping the U.S. are increasingly taking hold across Europe, our expansion into the international cannabis market presents tremendous new long-term growth opportunities for Curaleaf,” said Joseph Bayern, CEO of Curaleaf. “With the European population of nearly 748 million, the potential European addressable market is more than twice the size of the U.S. addressable market. With the ability to operate our new European business across country borders, with one or two cultivation sites and one manufacturing center to serve the entire region in most cases, combined with our ability to leverage the strength of our consumer packaged goods strategies and innovations from our U.S. operations, we see enormously positive implications for our ability to quickly and efficiently scale the business across Europe .”

 


Debra BorchardtMarch 9, 2021
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Curaleaf Holdings, Inc. (OTCQX: CURLF)  reported managed revenue increased 186% to $233.3 million in the fourth-quarter ending in December and grew 21% sequentially. The total revenue for Curaleaf was $230.35 million which increased 205.3% but missed estimates by $7.86 million. Still, the stock rose by 15% prior to the company’s earnings release and closed at $16.37.

The net loss for the quarter was $35.3 million, which was higher than last year’s net loss of $26.6 million. The fourth-quarter earnings per share were -$0.05, which missed estimates by $0.04.  The company said that the increase in losses was due to a $16.3 million increase in depreciation and amortization and a $10.5 million increase in share-based compensation, both of which are non-cash, a $25.8 million increase in income tax expense, and a $20.3 million increase in net interest expense.

For the full year of 2020, revenue grew 161% to $653 million. The net loss for the year was $61.7 million versus a net loss of $67.2 million for 2019. The decrease was a result of a $24.1 million increase in other income, which is mainly driven by gains on investments partially offset by impairment on the Eureka license, and a $52.0 million increase in the fair value of biological assets.

“Curaleaf’s record fourth-quarter results reflected the benefit of our acquisition of Grassroots, which expanded our presence into 6 new states, including high-growth markets such as Illinois and Pennsylvania as well as the continued ramp-up of Select, which is now in 17 states,” said CEO Joe Bayern. “In 2021, we expect to see the positive benefits of the transformative legalization of adult-use cannabis in Arizona and New Jersey. As we have stated, we believe New Jersey will accelerate the potential of future adult-use in key states such as New YorkPennsylvania, and Connecticut. Each of these markets present an enormous growth opportunity for us, as Curaleaf is the only MSO with a leading presence in every one of these states.”

In the fourth quarter, the company completed the acquisition of Alternative Therapies Group (“ATG”), divested Curaleaf Maryland’s assets for a total consideration of $4.0 million, and launched 32 new formulated products across form factors during the quarter.

European Move

Curaleaf also announced that it was buying EMMAC Life Sciences Limited, the largest vertically integrated independent cannabis company in Europe for$286 million to be paid 85% in Curaleaf subordinate voting shares and 15% in cash. Contingent consideration of up to $57 million will be paid in Curaleaf subordinate voting shares and cash in the same ratio based upon the successful achievement of performance milestones. The proposed transaction provides Curaleaf with a developed platform for entry into the European cannabis market.

Management Comments

Boris Jordan, Executive Chairman of Curaleaf commented, “In parallel with the announcement of our record financial results, earlier today Curaleaf issued a separate press release announcing its entrance into the European cannabis market with acquisition of EMMAC Life Sciences Limited, Europe’s largest vertically integrated independent cannabis company.  This milestone transaction will give Curaleaf a leading presence in key European medical cannabis markets including the United KingdomGermanyItalySpain, and Portugal, among others. The proposed transaction will provide Curaleaf with access to the European market of 748 million people, representing another transformational growth driver for Curaleaf for years to come.”

Mike Carlotti, Chief Financial Officer of Curaleaf, added, “Curaleaf, once again, delivered record quarterly and annual results highlighted by record Managed Revenue, Pro Forma Revenue, and a 27% sequential improvement in Adjusted EBITDA. With our successful integration of Alternative Therapies Group in October 2020 , starting next quarter, we will no longer report Managed Revenue thus simplifying our financial reporting.  Our recent capital raises further strengthen the Company’s balance sheet providing it with ample capital to pursue planned organic growth initiatives, potential investments in states that may go adult-use sooner than later and for strategic acquisition opportunities.  We believe that 2021 will be yet another record year for Curaleaf as we continue to expand our cultivation in key markets, open additional stores, expand our product and brand platforms, invest in future growth opportunities as well as see the benefit from Arizona’s recently approved adult use market and potentially New Jersey’s in late 2021.”


Taneia SurlesFebruary 12, 2021
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6min29351

Editors Note: This story is part of a month-long series for Black History Month featuring leaders in the cannabis industry.

 

With marijuana becoming more legalized over the years, those who have played a large part in the cannabis industry must be given a seat at the table. And that means there is a need for experts in diversity and inclusion to intervene on the issue. That is where Khadijah Tribble comes into play with her expertise in both the cannabis industry and diversity and inclusion.

Khadijah Tribble serves as the Vice President of Corporate Social Responsibility at Curaleaf (OTC: CURLF), the largest cannabis company in the United States. Tribble has been an advocate for various human rights initiatives, focusing on women’s rights, the LGBTQ community, veterans, and minorities. Her advocacy has led to her extensive career in diversity and inclusion, including her position at Curaleaf and founder of Marijuana Matters. The mission of Marijuana Matters is to educate the public about policies surrounding the cannabis industry and how they can impact marginalized communities. Tribble has proven herself to be a strong force in the journey to the diversification of the cannabis industry.

The Green Market Report interviewed Tribble to get insight on her position at Curaleaf and her thoughts on diversity and inclusion in the cannabis industry.

1) How did you get involved with Curaleaf?

Prior to joining Curaleaf, I founded Marijuana Matters (M2), a cannabis education and advocacy incubator, along with the Marijuana Policy Trust (MPT), a think tank focused on building an inclusive and diverse cannabis industry. I joined Curaleaf in March 2020, and I saw it as an opportunity to impact and shape an industry on the brink of its next phase of growth. I believe the cannabis industry can be a force for good. I’m proud to be a part of Curaleaf’s commitment to corporate social responsibility, particularly as regulation, policies, and opinions are still evolving.

2) What are Curaleaf’s corporate social responsibility initiatives?

Curaleaf’s “Rooted In Good” initiative focuses on three core pillars: Diversity, Equity & Inclusion (DE&I), Social Equity, and Sustainability. To be Rooted in Good is to consider the holistic health of the entire community. This initiative includes patients, employees, and neighbors, and the environments we impact, both locally and globally.

Our (DE&I) program is already underway, an internally focused approach with the critical goal of ensuring that Curaleaf reflects through its actions and decisions that it values diversity and inclusion across intersections between race, gender, sexual orientation, religion, disability status, veteran status, and socioeconomic backgrounds. The focus of our social equity initiative is on activating programs that foster repairing social harms and removing systematic barriers for people from communities most harmed by the War on Drugs and institutional oppression.

By 2025, Curaleaf aims to do business with 420 new cannabis brands, ancillary suppliers, and advocacy organizations from underrepresented communities in the cannabis ecosystem. To ensure the development of an inclusive industry, we are reaching out to populations of people touched by cannabis-related offenses. We will employ at least 10% of all 2021 new hires from this directly impacted community. This year, we are committed to contributing at least $1 million in community investment to programs that address collateral consequences associated with marijuana-related offenses.

3) What do diversity and inclusion mean to you in terms of the cannabis industry?

It means making sure that at our company that we create policies and practices that extend a wide net to include underrepresented communities. Whether it’s African American, LatinX, veterans, people with disabilities, and members of the LGBTQ community, diversity equity and inclusion means creating practices, policies, and systems inclusive of individuals from all of the underrepresented populations inside of cannabis.

4) How do Black history month and the cannabis industry intersect?

I believe it’s quite obvious that the way that cannabis has been criminalized and the impact of marijuana’s prohibition has hurt people of color, specifically black people. So, when we talk about Black History Month and the intersection of cannabis, we have to talk about the lingering negative impact of the collateral consequences associated with cannabis’s criminalization. And at Curaleaf, we believe that the most important role that we can play during Black history month is to elevate individuals from the black community in the cannabis space and amplify the voices of thought leaders in the cannabis space.  It is not our role as a company to supplant individuals who are doing this work at the intersection of cannabis and black history. It is our primary responsibility to make space. We’re doing that by amplifying voices and elevating entrepreneurs that are in the space.

As the cannabis industry grows, it is essential to represent people of underrepresented or marginalized communities. Companies like Curaleaf are taking the best steps forward by hiring experts in diversity and inclusion.

 

 


Debra BorchardtDecember 9, 2020
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Looking back at 2020, the Brightfield Group determined the cannabis product shelf space winners. A review of the first three quarters provided a snapshot of which products cannabis consumers wanted most. This type of information is invaluable to producers and dispensary owners alike. The producers can make sure that they have these products in their portfolio and dispensaries can make sure they stock their shelves with the items that customers want.

Increased 2020 Shelf Space:

  1. Candy
  2. Cartridges/Pods
  3. Resin/Rosin
  4. Disposable Pens
  5. Baked Goods

Candy

Brightfield’s report found that since January 2020, the candy category has captured 12% of the shelf and in August held 14% of the shelf its largest position to date. The category has grown by 41% in 2020. The report also noted that the shelves saw a shift towards luxury and premium prices.  Consumers have also been drawn to natural marketing and like options that are vegan, non-GMO, and additive-free.

Top Candy Flavors:

  1. Raspberry
  2. Watermelon
  3. Strawberry
  4. Fruity
  5. Chocolate

Top Candy Brands

  • Cheeba Chews
  • Smokiez Edibles
  • Kiva Confections
  • Wyld

Vapes

Despite the vape crisis of 2019, vape products commanded 22% of the shelf space for 2020. The report found that cartridges and pods grew shelf space by 3% in 2020. 74% of these products were in 500mg packages and a majority were marketed for relaxation and stress relief. The price preference was the opposite of candy, but that’s probably because vapes in general are more expensive. Budget-priced products saw an increase in shelf space and premium-priced products saw shelf space declines.

Top Vape Attributes

  1. Relaxation
  2. Stress
  3. Focus & Creativity

Top Vape Brands

  • Stiiizy
  • Jetty Extracts
  • Raw Garden
  • Curaleaf
  • Pure Vape
  • Alpine

Resin & Rosin

THC concentrates continue to win over new consumers. The product packs a bigger punch than vapes or traditional flower that typically deliver 15%-35% THC. These concentrates can provide doses of 60%-90% THC. While dabbing shatter, wax, or crumble has been the predominant concentrate method, rosin and live resin are coming on strong. Rosin is made with a solventless method that relies only on heat and pressure to extract cannabinoids and delivering a “cleaner” dab. Live resin is made with more traditional extraction methods and preserves the terpenes. This category increased its shelf space by 3%, while the shatter, wax and crumble categories fell.

Disposable Pens

Brightfield found that while disposable pens only garnered 4% of the dispensary shelf space, distribution grew by 68% in 2020. Once again, stress relief was the top choice for this consumer. The smaller products having 300mg grabbed the most space within the category and tend to be the most affordable. It’s the product of choice among the price-conscious consumer.

Baked Goods

Marijuana brownies are the OG of cannabis consumers, but the inconsistent response time for consumers make these products less desirable. Customers may react quickly or slowly after consuming a cookie or brownie and this lack of consistency is an issue. Only 3% of the distribution goes to this category. Still, in 2020 there was a 40% increase in shelf space for baked goodies.

Brightfield’s Top ten Product Launches of 2020:

  1. Care by Design – 8:1 Vape Cartridge
  2. Claybourne Co. – 501St OG Bud
  3. Kiva Confections – Midnight Blueberry Camino Gummies
  4. Stiiizy – wedding Cake Live Resin Pod
  5. Raw Garden Sleeroy G Pod
  6. Yummi Karma – YK Drops – Draft Away
  7. West Coast Cure – Venom Og Live Resin Sauce
  8. Pacific Stone – 505 Sour Hybrid Bud
  9. Heavy Hitters – Forbidden Fruit Cartridge
  10. Connected Cannabis Co. – 100% Live Resin Disposable

 

 


StaffNovember 6, 2020
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 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.

 


Debra BorchardtAugust 18, 2020
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Despite the challenges of COVID-19 in Massachusetts and Nevada, Curaleaf (OTC:CURLF) reported an impressive quarter and gave an even sunnier forecast. CEO Joe Lusardi said on the company’s earnings call that it took a $25 million hit to revenue in the quarter as a result of the pandemic. The tourist traffic in Nevada disappeared and the adult-use stores were closed in Massachusetts for weeks. Lusardi also pointed out that unlike Massachusetts’ quick recovery, Nevada’s recovery is painfully slow.

Earnings Recap

To recap, Curaleaf reported earnings after the close of the trading on Monday. The company delivered managed revenue of $121.4 million, which grew 120% year-over-year and 16% sequentially. Total revenue was $117.5 million, which grew 142% year-over-year and 22% sequentially. The net loss for the second quarter of 2020 was $2.0 million, compared to a net loss of $24.5 million in the second quarter of 2019. The company attributed the increase to a $19.2 million increase in the fair value of biological assets and a $1.1 million decrease in one-time charges.

“These benefits were partially offset by a $9.5 million increase in depreciation and amortization and a $0.3 million increase in share-based compensation, both of which are non-cash, a $5.3 million increase in income tax expense, and a $7.0 million increase in net interest expense.”

Guidance

Chief Financial Officer Mike Carlotti said on the call, “Based on current trends in our business and the ongoing recovery in Massachusetts and somewhat challenged recovery in Nevada due to COVID-19, pro forma Q3 revenue is expected to be approximately $205 million to $215 million. We expect to generate Q3 managed revenue of approximately $190 million to $200 million, which includes the partial Q3 benefit of the recently acquired Grassroots assets from the period of July 23 to September 30.”

“We expect to generate approximately $150 million to $160 million of managed revenues from core Curaleaf’s Select operations. We estimate Grassroots to contribute approximately $40 million in reported net revenue. Had Grassroots closed on July 1, it would have contributed approximately $55 million of revenue in the third quarter, net of assets now being held for sale in Maryland and Ohio to meet maximum license requirements. As Joe noted in his remarks during the quarter, we converted one of our main assets, Remedy to a for-profit, which was included in our Q2 financials.”

Political Landscape

The Curaleaf executives also had quite a few comments to make about the political landscape and the future of states like Connecticut and New Jersey.

Executive Chairman Boris Jordan said, “If you get a Biden administration, I suspect that most of the East Coast will be adult-use. And so I just don’t understand how they are going to deal with the fact that almost 80% of the population will have access to adult-use, about 85% will have access to medical. My view is that they will move reasonably quickly to some kind of either SAFE Act or something short of full legalization and maybe they will make some kind of special dispensation for medical.”

He added that New Jersey had not given any sort of timetable for adult-use, but surmised it could be quick as the state looks to relief in its budget as a result of the pandemic. He felt the New Jersey was no doubt watching the tax revenues enjoyed by Massachusetts. “If New Jersey goes adult-use, it is almost certain that Pennsylvania, New York and Connecticut will do it as well. And I think if we are talking again this time next year, on our second-quarter earnings call, I suspect that most of the East Coast will be.” (except perhaps Florida)

Banking

Carlotti said that Curaleaf accepts debit cards in eight states and will add three more by the fall. “What we have noticed is that typical transaction is about 20% higher than the average cash transaction and we have not seen any changes in visitation patterns as well. So, people are using the debit cards, they are spending more with those debit cards than they would otherwise if they just had cash.”

Lusardi said with regards to the SAFE Act, “A very major banking association, now including Visa, MasterCard is lobbying for the passage of this bill, because it makes sense its good public policy. So, we are hopeful that we will get a passage at some point and that will unlock credit card transactions in much bigger basket sizes that you would expect from like traditional retail.”


Video StaffAugust 17, 2020

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Curaleaf is rolling a new look to its dispensaries. Green Market Report visited the dispensary in Ware Massachusetts recently to see it in person. The old clinical looking medical dispensary has been replaced with a sleek, modern store for recreational consumers. This interview is an extended version with Curaleaf Massachusetts President Patrik Jonsson who spoke with GMR’s Debra Borchardt. The new design is discussed, along with bot the Select and Grassroots acquisitions


Video StaffAugust 17, 2020

1min19390

Curaleaf’s medical marijuana dispensaries used to have a decidedly clinical look about them. That has changed. Curaleaf’s adult-use stores have leveled up to a new modern stylish look. Green Market Report went on a road trip to Ware, Massachusetts to check out the new store look and talk to Curaleaf Massachusett’s President Patrik Jonsson. Thank you for watching the Green Market Report! Be sure to subscribe to our channel on YouTube.


Lydia KibetAugust 5, 2020
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According to the President of Curaleaf Holdings Company, Joe Bayern, Nevada could become the hub for cannabis. The Massachusetts-based company, which is famous for medical marijuana, operates 60 dispensaries in 12 states. In an interview with journalists, the president confided several plans to expand their operations to seven more states.

Currently, the company has a workforce of 160 employees in Nevada, serving at 40 different capacities. The announcement by Bayern comes after the Curaleaf acquired GR Companies Inc. for $900m.

Bayern believes that his company will catapult cannabis dispensaries based in Nevada to greater height in the mainstream.

Hiring and promoting

According to the president, Curaleaf has set itself apart by creating employment opportunities for Nevadans even during the COVID-19 pandemic. The company’s chairman Boris Jordan has revealed its plan to identify and maximize opportunities in the cannabis industry. Jordan believes that hiring at a time when other companies are downsizing will put them ahead of their competitors in Nevada.

Brand creation

Curaleaf is optimistic that they will penetrate the market and establish a brand. Bayern confided their plans to take advantage of the on-premise consumption in Nevada. However, the president downplayed the plan to focus on profit and insisted that they were focused on establishing themselves in Nevada.

The benefit in the disguise of COVID-19

Most businesses are closing down due to economic constraints meted by COVID-19. However, this has not been the case with the cannabis industry, according to Bayern. He believes that more people are buying cannabis products due to the therapeutic benefits associated with them. Bayern argues that the more Nevadans buy products from Curaleaf, the more they push it into the mainstream. The president also believes that the company is going to use sophisticated technology to make products for their clients. Despite the disruption of life by COVID-19, the high demand for cannabis in Nevada will push Curaleaf into the mainstream. 

Party life

The state of Nevada is famous for its liberal approach to party life. According to Bayern, Curaleaf could benefit from this freedom when recreational cannabis is fully legalized in Nevada. The company is planning to establish a lounge where cannabis users can enjoy their joints and vapor in peace. Bayern believes that the gradual legalization of cannabis in Nevada will push Curaleaf into the mainstream.

Flexibility to change

Bayern believes that their positive approach to change played a vital role in their incredible performance following the coronavirus outbreak. After the imposition of travel and socialization restrictions, Curaleaf shifted into home delivery. The home delivery services increased the productivity of the company to almost 100% in the first three weeks. Although Bayern did not disclose their profits, he agreed that the return to investment (ROI) for Curaleaf was positive. A positive ROI for Curaleaf will push it into the mainstream in Nevada.

He also revealed that during the massive lockdown in Nevada due to COVID-19, they were exempted from the restrictions. Instead, the company was recognized as an essential service provider, making it more popular among the Nevadans and pushing it towards the mainstream.


StaffJuly 23, 2020
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Curaleaf Holdings, Inc. (OTCQX: CURLF) closed on its previously announced acquisition of GR Companies, Inc. also known as Grassroots on July 23, 2020. Curaleaf stock was higher by almost 3% to $7.39 on the news as it has been almost a year since it was first announced. The stock is nearing its year high of $8.21.

The acquisition of Grassroots now propels Curaleaf to the top of the charts for cannabis companies by revenue. The company will now have affiliated operations that cover over 135 dispensary licenses, 88 operational dispensary locations, over 30 processing facilities, and 22 cultivation sites with 1.6 million square feet of current cultivation capacity. It also jumpstarts the company’s presence in the hot states of Illinois and Pennsylvania.

“The successful acquisition of Grassroots marks Curaleaf’s expansion into new vertically integrated markets in the Midwest, firmly establishing our U.S. market leadership position. This highly complementary combination brings together two companies with a shared vision for enhancing patients’ and customers’ lives with high-quality cannabis wellness and lifestyle products,” said Joseph Lusardi, CEO of Curaleaf. “The integration of Grassroots is expected to be immediately accretive to our financial performance, with our unprecedented scale providing significant opportunities to leverage Curaleaf’s powerful consumer brands as well as new form factor innovations across our expanded national presence.”

The company said in a statement that the cultivation and processing assets in Illinois have been transferred and the formal approval to transfer certain retail assets is expected imminently. Plus, Maryland operations previously affiliated with Grassroots may be transferred to Curaleaf after expiration of the statutory hold period, subject to regulatory approval and compliance with restrictions on ownership or control of multiple cultivations, processor, and dispensary licenses in the State.

Completion of the transaction accelerates Curaleaf’s expansion into Illinois and Pennsylvania, which are among the largest and fastest-growing cannabis markets in the United States. Curaleaf will now hold a leading licensed cannabis presence in-state markets including Arizona, Connecticut, Florida, Illinois, Pennsylvania, Maryland, Massachusetts, Maine, Nevada, New Jersey, New York, North Dakota, and Vermont.

“This opportunity would not have come to fruition without the strength of our highly skilled executive team, who have built an impressive portfolio at an unprecedented pace, with facilities in highly competitive markets,” said Mitchell Kahn, Co-Founder, and CEO of Grassroots. “We look forward to integrating our talent and resources to build a great consumer product company – one that is dedicated to producing and delivering high-quality, safe, and effective cannabis products to the customer.”

Curaleaf Announces New Board Member

Curaleaf also announced it appointed Kahn to the company’s Board of Directors effective immediately. The appointment of Mr. Kahn expands the Curaleaf Board of Directors from five to six members.

“On behalf of the Curaleaf Board of Directors and management team, we are pleased to welcome Mitch to the Board. As a co-founder of Grassroots, he brings an impressive track record for success in building the largest private, vertically integrated U.S. multi-state cannabis operator. Combined with his deep experience across commercial real estate as well as the legal field, Mitch adds significant expertise and insight that will be vital as we extend our market leadership position and drive long-term shareholder value,” said Boris Jordan, Executive Chairman of Curaleaf.

 


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