WAKEFIELD, Mass., May 6, 2019 /PRNewswire/ -- PRESS RELEASE -- Curaleaf Holdings, Inc., a vertically integrated cannabis operator in the United States, has announced it has signed a definitive agreement granting it an option to acquire Ohio Grown Therapies' (OGT) medical cannabis cultivation and processing licenses and facility in Ohio. OGT was awarded preliminary cultivation and processing licenses by the Ohio Department of Commerce in 2018.
OGT is building out its 32,000-square-foot cultivation and processing facility in Johnstown, Ohio. At completion, the facility will be comprised of 15,000 square feet for two-tier cultivation and 7,500 square feet for processing. Curaleaf is advising OGT on the buildout and expects to acquire OGT's cultivation and processing licenses as well as the lease to the Johnstown facility in the second half of 2019, subject to regulatory approval.
"Curaleaf's expansion into Ohio is another step in our goal to be the most accessible cannabis company in the country, providing patients with high-quality, reliable products," said Joseph Lusardi, CEO of Curaleaf. "This transaction is reflective of our strategy to become vertically integrated with a focus on limited license markets. As the seventh most populous state in the country, Ohio is an emerging cannabis market with strong growth potential and we plan to continue pursuing opportunities that increase our exposure to this expanding customer base."
The option allows Curaleaf to pay a total consideration of $20 million for the acquisition of the licenses and the lease to the Johnstown facility. The consideration will be paid upon completion of milestones, culminating with regulatory approval of the transfer of the final licenses and the facility to Curaleaf.
