NuLeaf Archives - Green Market Report

Debra BorchardtApril 7, 2022

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) has closed its acquisition of Nevada-based NuLeaf, Inc. in a deal valued at $53.6 million. NuLeaf operates two high-performing adult use and medical retail dispensaries in the Las Vegas area and one in Lake Tahoe. NuLeaf also owns a third licensed retail dispensary located directly on the Las Vegas Strip that is expected to open in the second quarter. The company also has a 27,000 sq. ft. cultivation facility in Sparks, NV, and a 13,000 sq. ft. processing facility in Reno, NV.

“We are excited to announce the closing of our third acquisition in Nevada, a milestone accomplishment for our team,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi Holdings Inc. “The acquisition of NuLeaf sets the tone for our growth plans in the state as we continue to scale and strengthen our operations in this limited license market. With our newly established vertically integrated footprint in the state, we look to gain market share of our brands and further capitalize on the significant opportunity in this market, aided by NuLeaf’s premier retail, cultivation and manufacturing assets. We look forward to the immediate revenue and EBITDA contribution this acquisition will bring as we fully integrate NuLeaf into our business.”

This is the latest move by Jushi to seriously establish itself in the Nevada market, which is valued at $1 billion. The NuLeaf deal follows the recently closed Apothecarium Nevada2 acquisition. Jushi’s retail footprint is now four dispensaries, three of which are located in the tourist-friendly Las Vegas area. Jushi also sees the opportunity to sell its own branded products in these dispensaries as well.

Just a couple of weeks ago, Jushi reported its total revenue rose 104% in the fourth quarter to $65.9 million over last year and increased 22% sequentially. However, Cacioppo said the company was experiencing a slowdown in revenue as it began the year. No doubt the addition of NuLeaf will help bolster those revenue numbers.

StaffNovember 22, 2021

High Tide Inc. (TSXV: HITI) (Nasdaq: HITI) announced it was buying 80% of NuLeaf Naturals, LLC for $31.24 million and will have a three-year option to acquire the remaining 20% of NuLeaf at any time. The total company is valued at $39 million. High Tide said that NuLeaf would be highly accretive noting that NuLeaf generated gross margins of 71% and Adjusted EBITDA¹ margins of 25% during the 12 months ended September 30, 2021.

“With this announcement, we have doubled down on our efforts to become a global market leader with respect to hemp-derived CBD production and e-commerce sales. Our strategy is backed by numerous studies which predict that the global CBD market is set to grow exponentially over the coming years, with Fortune Business Insights projecting that it will reach US$56 billion by 2028, equating to a compound annual growth rate of 47%. High Tide is growing across all three categories within the cannabis ecosystem, including THC, CBD, and accessories. With the purchase of NuLeaf, we are now further vertically-integrated in our CBD business, just like we have been with regard to consumption accessories. As international markets open up and as export regulations evolve, NuLeaf’s cGMP-certified facility positions us to take advantage of the global CBD business opportunity,” said Raj Grover, President and Chief Executive Officer of High Tide. “Additionally, NuLeaf has developed customized manufacturing technology for vegan softgels, establishing them as one of very few manufacturers in the U.S. with this capability. Their portfolio also includes other innovative products including their Multicannabinoid oils and softgels. This transaction will provide us with meaningful cross-selling synergies and margin enhancement opportunities for FAB and Blessed CBD.”

Founded in 2014 with its headquarters in Denver, Colorado, NuLeaf is a market leader in the production and distribution of premium cannabidiol (CBD) wellness products. NuLeaf can produce 60,000 plant-based softgels per hour and is one of only a few manufacturers in the United States that can produce a vegan softgel. NuLeaf has a strong distribution reach in the natural products channel and recently secured an expansion with Sprouts Farmers Market from 33 retail locations to an additional 235 stores. Over the 12 months ended September 30, 2021, NuLeaf had over 5.1 million site visits and an average order value of US$120.

“We are excited to partner with Raj and the High Tide team to deliver the highest quality cannabinoid products in the world,” said Bo Shirley, Co-founder of NuLeaf Naturals. “Utilizing the latest in cannabinoid research, we continue to drive innovation and growth by launching unprecedented products that revolutionize the market. High Tide is a global leader in cannabis and together we look forward to expanding our market share and building the future of this industry.”

“This strategic alignment with High Tide will enable us to continue to deliver exceptional value to our customers and retail partners,” said Jaden Barnes, Co-founder of NuLeaf Naturals. “As part of the High Tide organization, we are well positioned to take the next steps in our growth strategy while maintaining our laser focus on delivering a world-class cannabis experience.”