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Curaleaf Says Select Acquisition to Close Within Weeks

By Eric Volkman - Jan 17, 2020 at 2:15PM

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The cannabis company provides an update on the Select deal, plus two other pending acquisitions.

Curaleaf (CURLF -1.39%) will finally take possession of the Select brand of cannabis products soon -- if an estimation by the company proves correct. On Friday, Curaleaf issued an update about this pending acquisition, plus two others.

The company said it and Select have met all requirements for the acquisition, save for the transfer of a license in Oregon. The two are working with state officials to secure approval, Curaleaf said, and the deal should finally close by Feb. 1.

This has been dragging for quite some time. Curaleaf first announced it bought Cura Partners -- the company behind Select -- last May. The price was the equivalent of around $950 million, to be paid entirely in stock. The terms and scope of the Curaleaf/Select deal, however, were subsequently amended to value the transaction at roughly $286 million

Marijuana leaves and bottles of derivative product.

Image source: Getty Images

The company also shared a scrap of news about another pending transaction, its deal to buy dispensary operator Grassroots. Curaleaf and its asset-to-be "have each submitted certifications of substantial compliance" to regulators in order to push the deal through. Originally announced in July, Curaleaf's update said the acquisition should close this spring. The deal was valued at around $875 million when it was made public.

Finally, Curaleaf said it filed an application for change of control with Massachusetts's cannabis regulator in its pending takeover of dispensary operator Alternative Therapies Group (ATG), which like Curaleaf is headquartered in that state. As with Select, Curaleaf asserts that it and ATG are laboring to win approval for the $50 million all-cash deal as soon as they can.

Curaleaf, a popular marijuana stock, is up by almost 2% in mid-afternoon trading Friday.

 

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