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Cannabis giant Curaleaf Holdings, Inc. CURA CURLF is closing its previously announced acquisition of Northern Green Canada, a vertically integrated Canadian licensed cannabis producer focused primarily on expanding in the international market through its EU-GMP certification.
Terms of the acquisition of NGC include an initial payment at closing of the company’s subordinate voting shares valued at approximately $16 million, subject to a typical post-closing adjustment.
In addition, an earnout may also be paid in 2025 based upon the 2024 performance of NGC’s operations, up to 50% of which will be cash and the rest paid in additional subordinate voting shares.
Why It Matters
The deal boosts Curaleaf’s strategic advantage in established European markets including Germany, Poland and the United Kingdom while providing a foothold in the emerging markets of Australia and New Zealand, the company said on Monday in a press release.
“The global cannabis market is projected to generate $55 billion in sales by 2027. Emerging markets beyond the United States and Canada, including Germany, Australia and New Zealand are expected to contribute $6.3 billion of the $55 billion projection,” the company said.
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.
