Curaleaf (OTC:CURLF) is about to pocket $31.5 million from the sale of two sets of assets it owns, the marijuana company announced Friday. Both are located in Maryland, and are being divested in a pair of distinct transactions.
The first deal is for rights to assets held by HMS Health and HMS Processing, which the company said includes operations in a cultivation and processing facility in the municipality of Frederick. The buyer is Canada-based cannabis company TerrAscend (OTC:TRSSF). Curaleaf will receive $25 million in cash from TerrAscend when the deal closes, plus a $2.5 million interest-bearing note payable at the end of April 2022.
Once this transaction is completed, Curaleaf said, it will be able to proceed with its planned purchase of Maryland Compassionate Care and Wellness, an entity that operates a larger cultivation and processing facility, this one in Taneytown, and a dispensary in Gaithersburg.
The second transaction was the sale of an affiliated company, Curaleaf Maryland, for $4 million. That business holds a processing license in the municipality of Cumberland. The deal closed Nov. 1.
Curaleaf's ultimate intent is to reshape its operations in the state. In the press release detailing the two sales, CEO Joseph Lusardi said that the deals "will allow us to optimize Curaleaf's vertically integrated presence in Maryland within the regulation which limits operators to a single grow and single processor."
Capping a very good week for marijuana stocks in general, and for it in particular, Curaleaf's shares added 7.5% on Friday, in contrast to the flat performance of the S&P 500 index.