Curaleaf Completes Acquisition of Deseret Wellness

Rhea-AI Summary

Curaleaf Holdings has successfully completed the acquisition of Deseret Wellness, the largest cannabis retail operator in Utah, enhancing its strategic position in the state. The cash and stock transaction, valued at approximately US$20 million, adds three retail dispensaries in Park City, Provo, and Payson to Curaleaf's existing footprint, bringing its total to four in Utah and 150 nationwide. This acquisition aligns with Curaleaf's goal to expand its presence in emerging markets, capitalizing on Utah's rapidly growing medical cannabis program that generated US$118.7 million in sales last year. The newly acquired dispensaries are projected to generate an annualized revenue run rate of US$14 million, positioning Curaleaf for long-term growth.

Positive

• Acquisition of Deseret Wellness enhances Curaleaf's retail footprint in Utah to four dispensaries.
• Transaction valued at approximately US$20 million increases market presence in a high-growth region.
• Expected annualized revenue run rate of US$14 million from the newly acquired dispensaries.

Negative

• None.

Transaction Bolsters Curaleaf's Presence in Utah as State's Largest Retail Operator

NEW YORK, April 10, 2023 /PRNewswire/ -- Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) ("Curaleaf" or the "Company"), a leading international provider of consumer cannabis products, today announced the completion of its previously announced acquisition of Deseret Wellness ("Deseret"), the largest cannabis retail operator in Utah (the "Transaction"). With the close of the Transaction, Curaleaf's retail footprint has increased to four dispensaries in Utah and 150 nationwide.

Boris Jordan, Executive Chairman of Curaleaf, stated, "Deseret is an excellent strategic fit for Curaleaf as we continue to expand our retail footprint in key emerging markets. This transaction enables to better serve Utah's rapidly expanding medical program, which recorded a record-breaking US$118.7 million in sales last year. On behalf of the Board of Directors and management team, I am pleased to officially welcome Deseret to the Curaleaf family."

Matt Darin, CEO of Curaleaf, stated, "We are excited to complete our acquisition of Deseret which bolsters Curaleaf's medical footprint in Utah with an attractive portfolio of retail assets. Utah represents an emerging market opportunity with long-term growth potential, and we look forward to serving an expanded base of Utah medical patients with high-quality cannabis products."

The cash and stock transaction, valued at approximately US$20 million, includes three retail dispensaries located in the cities of Park City, Provo and Payson with a combined annualized revenue run rate of US$14 million.

About Curaleaf Holdings
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) ("Curaleaf") is a leading international provider of consumer products in cannabis with a mission to improve lives by providing clarity around cannabis and confidence around consumption. As a high-growth cannabis company known for quality, expertise and reliability, the Company and its brands, including Curaleaf, Select, and Grassroots provide industry-leading service, product selection and accessibility across the medical and adult-use markets. In the United States, Curaleaf currently operates in 19 states with 150 dispensaries and employs nearly 5,500 team members. Curaleaf International is the largest vertically integrated cannabis company in Europe with a unique supply and distribution network throughout the European market, bringing together pioneering science and research with cutting-edge cultivation, extraction and production. Curaleaf is listed on the Canadian Securities Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF. For more information, please visit https://ir.curaleaf.com 

Curaleaf IR Twitter Account: https://twitter.com/Curaleaf_IR
Investor Toolkit: https://ir.curaleaf.com/investor-toolkit
Investor Relations Website: https://ir.curaleaf.com

FORWARD-LOOKING STATEMENTS
This media advisory contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward–looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as "plans", "expects" or, "proposed", "is expected", "intends", "anticipates", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. More particularly and without limitation, this news release contains forward-looking statements and information concerning the completion of the Deseret Wellness acquisition. Such forward-looking statements and information reflect management's current beliefs and are based on assumptions made by and information currently available to the company with respect to the matter described in this new release. Forward-looking statements involve risks and uncertainties, which are based on current expectations as of the date of this release and subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Additional information about these assumptions and risks and uncertainties is contained under "Risk Factors and Uncertainties" in the Company's latest annual information form filed March 9, 2022, which is available under the Company's SEDAR profile at http://www.sedar.com, and in other filings that the Company has made and may make with applicable securities authorities in the future. Forward-looking statements contained herein are made only as to the date of this press release and we undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. We caution investors not to place considerable reliance on the forward-looking statements contained in this press release. The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.

INVESTOR CONTACT
Curaleaf Holdings, Inc.
Camilo Lyon, Chief Investment Officer
IR@curaleaf.com

MEDIA CONTACT
Curaleaf Holdings, Inc.
Tracy Brady, SVP Corporate Communications
media@curaleaf.com

 

View original content:https://www.prnewswire.com/news-releases/curaleaf-completes-acquisition-of-deseret-wellness-301792604.html

SOURCE Curaleaf Holdings, Inc.

FAQ

What is the significance of Curaleaf's acquisition of Deseret Wellness?

The acquisition enhances Curaleaf's retail footprint in Utah, making it the state's largest operator, and supports growth in its medical cannabis program.

How much did Curaleaf pay for Deseret Wellness?

The acquisition was valued at approximately US$20 million.

What are the expected financial benefits of the Deseret Wellness acquisition for Curaleaf?

The newly acquired dispensaries are projected to generate an annualized revenue run rate of US$14 million.

When was the acquisition of Deseret Wellness completed?

The acquisition was completed on April 10, 2023.

How many dispensaries does Curaleaf now operate in Utah?

Curaleaf now operates four dispensaries in Utah following the acquisition.