04.23.24
International provider of consumer cannabis products, Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF), has closed its acquisition of Northern Green Canada, a vertically integrated licensed cannabis producer focused on expanding in the international market through its EU-GMP certification.
Curaleaf said the acquisition strengthens its position in established European markets including Germany, Poland and the UK, and provides a foothold in the emerging markets of Australia and New Zealand.
"We are thrilled to welcome NGC formally to the Curaleaf family of global brands," said Boris Jordan, founder and executive chairman of Curaleaf. "This is an incredibly important deal for our international expansion strategy, as we'll be able to bolster our supply of high quality EU-GMP certified flower immediately to key European markets as well as enter the fast-growing markets of Australia and New Zealand."
The global cannabis market is projected to generate $55 billion in sales by 2027. Emerging markets beyond the U.S. and Canada are expected to contribute $6.3 billion of the $55 billion projection.
Terms of the acquisition of NGC include an initial payment at closing of Curaleaf’s Subordinate Voting Shares valued at approximately US $16 million, subject to a typical post-closing adjustment.
An earnout may also be paid in 2025 based upon 2024 performance of NGC's operations, up to 50% of which will be cash and the rest paid in additional Subordinate Voting Shares. The issuance of Subordinate Voting Shares in connection with the acquisition of NGC has been conditionally approved by the Toronto Stock Exchange, subject to fulfilling customary listing conditions.
Curaleaf said the acquisition strengthens its position in established European markets including Germany, Poland and the UK, and provides a foothold in the emerging markets of Australia and New Zealand.
"We are thrilled to welcome NGC formally to the Curaleaf family of global brands," said Boris Jordan, founder and executive chairman of Curaleaf. "This is an incredibly important deal for our international expansion strategy, as we'll be able to bolster our supply of high quality EU-GMP certified flower immediately to key European markets as well as enter the fast-growing markets of Australia and New Zealand."
The global cannabis market is projected to generate $55 billion in sales by 2027. Emerging markets beyond the U.S. and Canada are expected to contribute $6.3 billion of the $55 billion projection.
Terms of the acquisition of NGC include an initial payment at closing of Curaleaf’s Subordinate Voting Shares valued at approximately US $16 million, subject to a typical post-closing adjustment.
An earnout may also be paid in 2025 based upon 2024 performance of NGC's operations, up to 50% of which will be cash and the rest paid in additional Subordinate Voting Shares. The issuance of Subordinate Voting Shares in connection with the acquisition of NGC has been conditionally approved by the Toronto Stock Exchange, subject to fulfilling customary listing conditions.
