Nearly a year after the initial announcement, Curaleaf Holdings (CSE: CURA) has finally closed on the purchase of Tryke Companies, whom is currently operating as Reef Dispensaries. With the closing of the transaction, Curaleaf now boasts 29 cultivation sites and 144 dispensaries across the US.
The transaction, which was originally pegged at US$286 million, effectively amounted to US$181 million after the continued fall in the value of Curaleaf’s shares. Much of the consideration is to be paid in shares, with 2.7 million shares issued upon closing, and a further 16.5 million subordinate voting shares to be paid out over the next three years. Cash meanwhile consisted of US$10 million at closing, and US$75 million over the next three years.
Contingent consideration of an additional 1.0 million shares may be paid out next year as well, based on EBITDA targets for 2022 being achieved.
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The company is said to have four retail dispensaries within Nevada, and a further two in Arizona. Tryke also has processing licenses covering 30,000 square feet of cultivation space, which is reportedly expandable up to 80,000 square feet.
The purchase is said to be immediately accretive to Curaleaf’s EBITDA margins and free cash flow generation.
Curaleaf last traded at $6.65 on the CSE.
Information for this briefing was found via Sedar and Curaleaf Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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