Vertically built-in cannabis firm Curaleaf Holdings revised its deal to acquire privately owned multistate operator Grassroots Cannabis

The inventory and money transaction was initially introduced in July 2019 with a price ticket of $875 million. But since then cannabis inventory costs have fallen.

In a notice issued Monday, Stifel GMP analysts Robert Fagan and Andrew Partheniou stated the amended deal needs to be price a complete of roughly $700 million based mostly on Curaleaf’s present share worth.

Massachusetts-based, publicly traded Curaleaf stated in a information launch that the amended deal for Chicago-based Grassroots:

  • Eliminates the $75 million money element of the unique settlement.
  • Increases the Curaleaf share consideration from $40 million to $90.1 million.

The share consideration for the deal will now whole about 118.9 million Curaleaf subordinate voting shares.

Curaleaf stated unspecified Grassroots belongings in Illinois, Maryland and Ohio can even be offered off below the up to date deal “to comply with local (limitations) on license ownership.”

Fagan and Partheniou wrote of their notice that these divestitures may embrace retailer licenses in Illinois, shops and a facility in Maryland and a manufacturing facility in Ohio.

Proceeds from promoting these belongings could possibly be price between $100 million and $150 million, the analysts wrote.

The accomplished merger will “expand Curaleaf’s presence from 18 to 23 states, with the combined company having over 135 dispensary licenses, 88 operational dispensary locations, over 30 processing facilities and 22 cultivation sites,” in accordance to the discharge.

Curaleaf trades on the Canadian Securities Exchange below the ticker image CURA.

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