Pot giant Curaleaf on Friday said it will sell $31.5 million worth of medical marijuana production facilities in Maryland to fund an acquisition that would double its cultivation and processing capacity in the state.
- It includes: Sale of Curaleaf's interests in HMS cultivation and processor to TerrAscend (OTCQX:TRSSF) at $27.5M, payable in cash ($25M) and notes ($2.5M); and Completion of sale of Cumberland, MD processor for $4M.
- The company says this HMS transaction will allow to move ahead with its proposed acquisition of Maryland Compassionate Care and Wellness; closing remains subject to regulatory approvals.
- "The asset sales we announce today 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. Overall, the Maryland market continues to see impressive growth with over 115,000 certified cannabis patients," says CEO Joseph Lusardi.
Curaleaf is one of the few companies in New York that is licensed to procure and sell medical marijuana. The company is getting bigger by the day.
With the legalization of recreational marijuana in neighboring New Jersey on election day, it appears highly (no pun intended) likely that New York will similarly pass legislation legalizing marijuana. The birth of a new industry can be a highly democratizing force if done right. But ceding control of the marijuana industry to a handful of wealthy super-producers such as Curaleaf will lead it down the familiar path of Wall Street style corporate greed, a loss for all but those at the top. I would like to see a small-business, entrepreneurial approach to the business side of recreational marijuana, similar to how the craft-brewing industry in the state has emerged.