NEW
YORK, April 22, 2024 – PRESS RELEASE –
Curaleaf Holdings Inc., a leading international
provider of consumer cannabis products, closed its acquisition of Northern Green Canada (NGC), a vertically integrated
Canadian licensed cannabis producer focused primarily on expanding in the
international market through its EU-GMP certification. The accretive
acquisition amplifies the Curaleaf’s strategic advantage in established
European markets, including Germany, Poland and the United Kingdom, and
provides a foothold in the emerging markets of Australia and New Zealand.
Integrating
NGC's international operation will equip Curaleaf with a secure and consistent
high quality, nonirradiated, indoor EU-GMP flower supply, essential to
maintaining its leading positions in Germany, the U.K. and Poland.
"We
are thrilled to welcome NGC formally to the Curaleaf family of global
brands," Curaleaf founder and Executive Chairman Boris Jordan said. “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 United States and Canada, including Germany, Australia and New Zealand, are
expected to contribute $6.3 billion of the $55 billion projection.
Terms
of the acquisition of NGC include an initial payment at the closing of the company's
Subordinate Voting Shares valued at approximately U.S. $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.
