Curaleaf Completes Acquisition of EMMAC, Securing $ 130 Million Funding from a Single Strategic Institutional Investor – MJNews Community

EMMAC brings vertically integrated operations into Europe with a presence in major medical cannabis markets including the UK, Germany, Italy, Spain, and Portugal

MASSACHUSETTS: Curaleaf Holdings, Inc., a leading global provider of cannabis consumer products, has successfully completed the previously announced acquisition of EMMAC Life Sciences Limited, the largest vertically integrated independent cannabis company in cannabis Europe, for the basic consideration of approx. $ 50 million in cash and 17.5 million shares of Curaleaf with additional consideration payable based on successful achievement of performance milestones. At the same time, Curaleaf founded Curaleaf International Holdings Limited in Guernsey to hold the EMMAC investment and drive European expansion.

To accelerate the expansion of Curaleaf International, Curaleaf has secured an investment from $ 130 million from a single strategic institutional investor in exchange for a 31.5% stake in Curaleaf International, which is a $ 413 million Post Money Review, with $ 80 million available in cash. The subscription funds the entire cash portion of the EMMAC acquisition consideration of $ 50 million with the rest $ 80 million to fund Curaleaf International’s current investment plan through 2022 and the pipeline of potential acquisitions. This infusion of leverage into Curaleaf International is accelerating Curaleaf’s expansion plans in Europe by fully funding Curaleaf’s cash spending on the EMMAC acquisition and providing the capital needed to support Curaleaf International’s near-term European rollout. With the foreseeable expansion budget fully funded, Curaleaf’s new international business can focus on carrying out its further European expansion.

Curaleaf and the strategic investor have entered into a shareholders’ agreement on the governance of Curaleaf International, under which Curaleaf will have control over operational matters as well as the raising of capital and the ability to exit the business. In addition, the strategic investor’s stake is subject to put / call rights that allow both parties to buy Curaleaf’s stake for Curaleaf shares from 2025.

Boris JordanThe CEO of Curaleaf stated: “The successful completion of our acquisition of EMMAC and the establishment of our new business of Curaleaf International mark a transformation starting point for our entry into the European cannabis market. Building on our market leadership position in the US, this transaction establishes Curaleaf as the global leader in pure cannabis by revenue and geographic reach. With our only strategic institutional investor, we have created a strong foundation for the future growth path of Curaleaf International. We look forward to welcoming you on behalf of the Board of Directors and the management team of Curaleaf Antonio Costanzo, Co-Founder and CEO of EMMAC, as CEO of Curaleaf International and the entire Curaleaf EMMAC team. “

The new Curaleaf International platform includes cultivation, EU GMP certified processing, distribution and R&D activities in several major European medical cannabis markets, including the United Kingdom, Germany, Italy, Spain and Portugal. Green land, Curaleaf International’s European market cultivation facility in Portugalis one of the oldest licensed cannabis growing facilities in Europe with an acreage of approximately 2 hectares and leads the industry in terms of cost-effectiveness of cannabis production. The Portugal The cultivation facility, based in Curaleaf International, offers the potential to serve customers in the most important European medical cannabis markets and exports to countries such as: Israel, among other. Curaleaf International plans to significantly increase its growing capacity in 2021, exceeding 10 tons per year by 2022, to accommodate future growth related to expanding cannabis access to major European medical and adult sectors, as well as export markets . Curaleaf International also has an operational presence and partnerships in European Union countries adopting new medical cannabis access programs. Curaleaf International will also serve as a platform for other possible acquisitions Europe and adjacent areas and for participation in pilot programs for adult use.

Joseph Bavaria, CEO of Curaleaf, commented, “As consumer and political liberalization trends around cannabis emerge in the United States EuropeOur expansion into the international cannabis market offers Curaleaf tremendous new long-term growth opportunities. With a European population of almost 748 million1, the potential European addressable market is more than twice the size of the US addressable market2. With the ability to run our new European business across national borders, with one or two growing locations and a production center to serve the entire region in most cases, combined with our ability to leverage the strength of our strategies and innovations for consumer goods from our countries to leverage In the US, we are seeing a tremendously positive impact on our ability to scale the business quickly and efficiently Europe. ”

After the successful completion of the transaction, Mr. Antonio Costanzo has been appointed as the new Chief Executive Officer of Curaleaf International. The former EMMAC management team continues to lead Curaleaf’s new European presence, driving local European strategy and day-to-day operations.

Antonio Costanzo, CEO of Curaleaf International, commented: “This is an important day for the European cannabis market as EMMAC becomes Curaleaf International. I look forward to working closely with the Curaleaf team to shape the future of cannabis for our patients and customers around the world. We will maintain our science-based approach to continue delivering top notch cannabis products for Europe The growing medical cannabis market will work closely together to capitalize on US experience and innovation in consumer products and to capitalize on the emerging market for adult use, if legislation allows. We are now very well positioned to realize our aggressive growth ambitions. “

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