WAKEFIELD, Mass., March 18, 2019 /PRNewswire/ — Curaleaf Holdings, Inc., a vertically integrated cannabis operator in the United States, today announced it has signed a definitive agreement to acquire Acres Cannabis (“Acres”). With 269,000 sq. ft. of operating cultivation facilities and further expansion as needed on its 37 acres of land in Amargosa Valley, Nevada, Acres operates the state’s largest cultivation facility, a state-of-the-art production and extraction lab and an immersive cannabis dispensary located in the city of Las Vegas, adjacent to the Strip, with a second dispensary under construction.
"The acquisition of Acres is a major step in expanding our vertical platform in Nevada. Acres operates a flagship dispensary in the heart of Las Vegas, complementing our existing assets in the state extremely well, and importantly, we can control the consistency, quality and production cost of our own cannabis products," Joseph Lusardi, CEO of Curaleaf, said. "We have built the most accessible, trusted and reliable cannabis brand and are extremely excited about the prospects in Nevadaboth for retail and wholesale activity."
The addition of Acres’ cultivation platform will provide Curaleaf with 42,000 sq. ft. of functioning climate-controlled greenhouses and 227,000 sq. ft. of outdoor cultivation in Amargosa Valley. The site is currently under construction, adding another 133,000 sq. ft. of capacity. At over 400,000 sq. ft., the facility is expected to generate 100,000 pounds of dry flower per year at full scale. During the fourth quarter of 2018, Acres harvested over 5,000 pounds of flower.
Acres also operates an award winning 19,000 sq. ft. dispensary in Las Vegas, NV. The cannabis experiential store is open 24 hours a day, 7 days a week, and hosts America’s first marijuana farmers market every weekend. Steeped in the cannabis culture, the facilities offer a museum and open view processing kitchen where customers can view the processing of edibles and extracts. Acres also has a second dispensary in Ely, Nevada currently under construction and scheduled to open later this year.
John Mueller, CEO of Acres, commented, “Curaleaf’s management, vision and rapid expansion plans made them the natural fit for Acres.” Mueller added, “Acres believes Curaleaf is very well positioned to continue to be the largest cannabis operator in the U.S. giving our partners significant upside.”
Acres dispensaries are expected to be branded as Curaleaf by year end to further expand its leading footprint as the largest operator of single-branded dispensaries in the U.S.
The Acres acquisition significantly increases Curaleaf’s cultivation and manufacturing operations from which Curaleaf will supply its own flagship dispensary at 1736 Las Vegas Blvd in Las Vegas, scheduled to open in the second quarter of this year. Curaleaf will further continue the operation of its indoor grow facility, located near Las Vegas, producing consistently high-quality strains to be sold predominantly in Curaleaf stores in Nevada.
The transaction, valued at $70 million, with $25 million to be paid in cash, $45 million to be paid in Curaleaf stock and additional consideration to be paid if certain financial targets are exceeded, is subject to customary closing conditions and expected to close in 2019.