Benzinga | Oct 4, 2021 01:58PM EDT

Curaleaf Buys One Of Colorado's Largest Cannabis Farms In $67M Deal

Curaleaf Holdings, Inc. (CSE:CURA) (OTCQX:CURLF) has completed the acquisition of Los Sue?os Farms, a large-scale outdoor cannabis grow in Colorado.

"We're very excited about the closing of the Los Sue?os acquisition. The vertical integration of our business in Colorado significantly strengthens Curaleaf's market presence in the second-largest state cannabis market in the U.S.," said Boris Jordan, Curaleaf's executive chairman.

Curaleaf's CEO Joseph Bayern added that the acquisition provides important new cultivation capacity to accelerate growth and share in the Colorado market.

"By leveraging the outdoor grow expertise of the talented Los Sue?os team, we will optimize our new outdoor scale and cultivation technologies to lower our total cost of delivery," Bayern said.

Jordan added that he expects the purchase to be a big driver of sales on a regional scale once interstate commerce is allowed.

The Deal's Deets: According to a previous announcement from the company, the $67 million deal was paid in a combination of 61% in Curaleaf shares, 29% in cash, with a remaining 10% to be paid in assumed debt across five years.

With the acquisition, Curaleaf gains three outdoor cannabis grow facilities covering 66 acres of cultivation capacity including land, equipment and licensed operating entities.

The deal also includes an indoor grow with 1,800 plants and two retail cannabis dispensary locations serving adult-use customers.

Los Sue?os founder Bob DeGabrielle will continue to oversee Los Sue?os' operation and will take responsibility for Curaleaf's Colorado wholesale and retail businesses.

Photo: Pixabay.