Curaleaf Holdings, Inc. has signed a definitive agreement to acquire Acres Cannabis which, 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 one of the state's largest cultivation facilities, a production and extraction lab and a 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, and most importantly, we can control the consistency, quality and production cost of our own cannabis products," says Joseph Lusardi, CEO of Curaleaf.
According to the company, 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.
"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", the company concludes.