NEW
YORK, March 19, 2024 – PRESS RELEASE – Curaleaf Holdings Inc., a leading international provider of
consumer cannabis products, announced it has signed a deal to acquire Northern
Green Canada (NGC), a vertically integrated Canadian licensed cannabis producer
focused primarily on expanding in the international market through its EU-GMP
certification. NGC also partners with Canadian GACP cultivators to produce and
distribute finished cannabis products to both the domestic and global markets.
NGC
is one of the few Canadian cultivators with EU-GMP certification. As such, NGC
has consistently supplied high-THC, non-irradiated flower to the German market,
which is expected to see exponential growth following the recent removal of
cannabis from the narcotics list. NGC is also increasingly supplying Australia
and New Zealand, the world's fastest-growing cannabis markets.
Given
NGC's longstanding role as a key supplier to Curaleaf's Four20 brand, this
acquisition marks a significant milestone in Curaleaf's expansion strategy,
particularly in Europe. By integrating NGC, Curaleaf can significantly increase
its European margins while extending its global footprint across three
continents: North America, Europe, and Australasia (Australia/New Zealand).
The
deal provides Curaleaf International with secure and consistent high quality
indoor EU-GMP flower supply, ensuring the leading position in the growing
German market during a critical juncture, while also allowing the company
to maintain its leadership position in the U.K. and expand its first-mover
advantage into Poland. Further, NGC's facility has both ample space and
regulatory certification available for modular build-out of additional grow
rooms, allowing for increased capacity.
Boris
Jordan, executive chairman of Curaleaf, said, "We expect the NGC
acquisition to be a highly accretive deal that marks Curaleaf's first step into
the Australasian markets, creating a true global cannabis company with global
brands. It allows Curaleaf to safeguard our position in Europe, enhancing our
supply chain while increasing our margins. The opportunity in Germany alone
cannot be understated, and we continue to prepare strategically for that moment
and beyond. We are committed to delivering the highest quality flower in every
market we operate, and we are thrilled to welcome the NGC team to the Curaleaf
International family."
Juan
Martinez, head of Curaleaf International, said, "The NGC deal complements
our Portuguese cultivation and processing assets, which we continue to expand
and develop. With the addition of NGC's indoor non-irradiated flower, coupled
with existing production from Portugal that can be quintupled as demand
dictates, Curaleaf will have ample high quality GMP supply and future expansion
capacity to meet growing market needs. We anticipate other EU countries to
follow Germany's lead in advancing their medical cannabis programs to increase
patient access."
Lisa
McCormack, president and CEO of Northern Green Canada, said, "The NGC team
is excited to become a part of the Curaleaf family. As their longstanding
commercial partner, we believe we can help accelerate Curaleaf's growth in
global markets. We are committed to providing high quality GMP products
under the umbrella of the largest global cannabis company in the world."
The
deal is expected to close in the second quarter of 2024, pending all regulatory
approvals.
