Curaleaf Acquires 2 Businesses In Arizona For $25.5M

Curaleaf Holdings Inc CURLF will expand in Arizona through the acquisition of two separate businesses that will allow it to open two new stores in the Phoenix area.

What Happened

The vertically-integrated cannabis operator entered into an agreement to acquire Glendale Greenhouse, which operates a cultivation and processing facility, and a prime retail location.

The other acquisition involves Phytotherapeutics Management Services, which owns a retail license and a dispensary in Arizona.

Both acquisitions have a combined value of $25.5 million, which includes $3.5 million in stock and $22 million in cash.

Why It's Important

Through the acquisition of Glendale, Curaleaf will get access to a 20,000 square-foot multi-level cultivation center with an estimated annual capacity of 3,600 pounds of flower.

In addition, Glendale owns a 1,500 square-foot dispensary located off the Agua Fria Freeway, which can be expanded to 5,000 square feet. Glendale holds the master lease on the 15,000 square-foot building where the dispensary is based.

Glendale's processing facility has a CO2 extraction lab and kitchen that is producing various edible products.

Once the acquisition of Phytotherepeutics is completed, the license associated with the dispensary will be applied to a new flagship location in a prime spot on the 83rd Avenue in the Phoenix metro area.

Curaleaf traded higher by 2.2% to $7.41 per share at time of publication.

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