Curaleaf Holdings acquiring Grassroots for $875M
Curaleaf Holdings has signed a definitive agreement to acquire GR Companies - Grassroots -, the largest private vertically-integrated multi-state operator, in a cash and stock deal valued at approximately $875M. Grassroots has a portfolio of 61 dispensary licenses. The proposed transaction will expand Curaleaf's presence from 12 to 19 states, and the combined company will have 131 dispensary licenses, 68 operational locations, 20 cultivation sites and 26 processing facilities. Upon completion of the proposed transaction, Curaleaf will be the largest medical and adult-use cannabis company with access to a total population of approximately 177 million people. Curaleaf will acquire Grassroots for total consideration of approximately $875M, composed of $75M in cash, 102.8 million subordinate voting shares of Curaleaf, and $40M in Curaleaf shares priced at the 10-day volume-weighted average price prior to closing of the transaction. At closing, securityholders in Grassroots will have approximately 16% pro forma ownership of Curaleaf on a fully-diluted basis after giving effect for the Select acquisition. The proposed transaction is expected to close in early 2020. At closing of the proposed transaction, the core securityholders of Grassroots will have, as a group, the right to appoint one person to serve on the Curaleaf Board of Directors. Mitch Kahn, co-founder and CEO of Grassroots, will fill the allotted board seat. Kahn co-founded Grassroots in 2014.