In a move to expand its influence to another major state in the cannabis industry, Curaleaf Holdings, Inc. (OTC: CURLF) announced -a definitive agreement Wednesday to acquire Eureka Investment Partners, LLC.
The move allows Curaleaf, a U.S.-based vertically integrated cannabis business, to acquire Eureka’s Monterey County, California-based cultivation facility, a Salinas Valley cultivation facility and three dispensaries in development across the state.
The dispensaries are located in Long Beach, Salinas and Monterey County and are expected to open in the second half of this year.
This marks Curaleaf's retail launch in the Golden State and signifies what the company considers “plans for aggressive expansion across the state.â€
The Cannabis Capital Conference is coming back to Toronto April 17-18!
Subject to closing conditions, the acquisition is valued at $30.5 million: $10 million cash and $20.5 million in Curaleaf stock. A potential additional consideration will be paid if specific financial targets are exceeded, according to Curaleaf.
The deal is expected to close in March 2019.
In a statement, Curaleaf CEO Joseph Lusardi noted the importance of the company's entrance in California.
"The Eureka transaction represents a significant milestone for Curaleaf, enabling us to enter the highly attractive California market with a cultivation platform that we intend to use for statewide product distribution."
Curaleaf's operations whave been licensed by the state of California and the city of Davis, according to the company.
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Photo courtesy of Curaleaf.
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