Curaleaf Sells 6 Properties For $28.3M

Curaleaf Holdings, Inc. CURACURLF has provided itself an additional revenue stream through the sale of six properties for $28.3 million.

The acquisition with the newly formed Freehold Properties, Inc., a real estate investment venture, is made up of $25.5 million in cash and Freehold common stock, totaling roughly $2.8 million.

The deal includes two cultivation and productions sites in Massachusetts and New Jersey, with four retail locations in New Jersey, Massachusetts and Florida rounding out the six.

Why It Matters

The agreement will allow Curaleaf to continue using the six locations used for growing, processing and retail sales under a long-term, triple-net lease. Curaleaf plans to use the money to fund its ongoing expansion efforts in the U.S.

"We are delighted to see more traditional sources of financing becoming available to the cannabis industry and intend to deploy the proceeds to continue our rapid expansion and create shareholder value," Curaleaf CEO Joseph Lunardi said in a press release.

Freehold Co-Founder, Chairman and CEO Don Brian discussed Curaleaf's reputation in the industry and its importance as a partner.

"Curaleaf has established a large footprint in desirable markets and locations as the leading vertically integrated cannabis operator in the country. We are pleased to begin executing our growth strategy with such a strong operating partner, and we look forward to working closely with them to meet their future capital needs."

What’s Next

Freehold said it expects the deal to close by the end of the month.

Curaleaf plans to have additional real estate activity to fund operational facilities and construction projects.

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