CURLF stock is trading in the green despite the broader weakness in the cannabis sector after Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF) received rights for cultivation and processing in Ohio through its most recent acquisition.
Curaleaf is growing rapidly and has now set its sight on the state of Ohio. In a new development, Curaleaf has acquired the company Ohio Grown Therapies, which is engaged in the medical cannabis cultivation business. This is a highly strategic acquisition because it is going to open up many new possibilities for the company.
CURLF Stock: The Deal
Ohio Grown Therapies is an interesting company considering the fact that it has its own production unit, and in addition to that, it has a range of preliminary processing licenses. The licenses were issued by the Ohio Department of Commerce back in 2018, and once Curaleaf acquires the company, it will own both the production unit as well as the licenses.
According to the deal that was signed this morning, Curaleaf has signed an agreement that gives it an option to acquire Ohio Grown Therapies for $20 million. However, the total sum will depend on certain targets that will have to be met. One of the important stipulations is the regulatory approval for the transfer of the licenses.
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CURLF stock is trading higher by 1.50% at $11.21 on the OTC market.
Meanwhile, on the CSE, CURA stock is trading at $15.01, up 1.40% at the time of writing.
Curaleaf Holdings: Importance
As is well documented, higher production capabilities are absolutely vital for any cannabis company that wants to be a major player in the industry, and this particular deal allows Curaleaf to be exactly that. After the acquisition is completed, Curaleaf will acquire Ohio Grown Therapies’ 32,000 sq. ft. production facility in Jonestown, Ohio. This production facility will soon be going through an expansion as well.
In the Jonestown facility, around 15,000 square feet of the area could be used entirely for cultivation purposes, and that could produce thousands of kilos of cannabis year after year.
Last week, Curaleaf signed a definitive agreement to acquire Cura Partners’ state-regulated cannabis business.
What do you think about the Curaleaf acquisition?
Featured image: Canva
