Trulieve Enters West Virginia Cannabis Market, Closes Acquisition Of Mountaineer Holding

Trulieve Cannabis Corp. TRUL TCNNF, a vertically integrated seed-to-sale and fully licensed medical marijuana company, has purchased West Virginia-based Mountaineer Holding LLC for $6 million.

Kim Rivers, the CEO of Tallahassee, Florida-based Trulieve, said Thursday the cannabis company is pleased to finalize the “transaction quickly, as the addition of Mountaineer achieves a significant presence for us in West Virginia.”

The Trulieve-Mountaineer Deal: Under the terms of the agreement, Trulieve bought a cultivation permit and two dispensary permits.

The sum the company agreed to pay in exchange includes $3 million in cash and some 60,342 Trulieve subordinate voting shares worth $3 million.

Fox Rothschild LLP acted as legal counsel for the transaction.

What It Means For Trulieve: The acquisition, which was announced in March, expands Trulieve’s footprint in West Virginia to six dispensaries and positions it for vertical operations.

The company plans to launch operations in the Mountain State by the end of 2021, Trulieve said. 

“Our teams have already been at work in the state, and adding Mountaineer to our portfolio provides significant potential for depth and scale,” she said. 

Recent Trulieve Analyst Action: Cantor Fitzgerald’s Pablo Zuanic recently raised the firm's Trulieve price target to $89 while maintaining an Overweight rating ahead of the first-quarter 2021 report scheduled for May 13.

TCNNF Price Action: Trulieve shares were trading 2.56% higher at $40.20 at last check Friday. 

Photo by Esteban Lopez on Unsplash.