Curaleaf Holdings, Inc., a globally recognized distributor of cannabis consumer goods, announced the fulfillment of its newly disclosed acquisition of Bloom Dispensaries, an Arizona-based fully integrated cannabis business.
Curaleaf’s retail network increased to 13 dispensaries in Arizona and 121 nationally following the acquisition.
According to Boris Jordan, Executive Chairman of Curaleaf, Bloom is a solid strategic priority for Curaleaf since it enhances its power and retail presence in Arizona.
The said company has an outstanding portfolio of properties, providing better service to the state’s annual market opportunity of US$1.4 billion or more.
Bloom will instantly improve the adjusted EBITDA results, Jordan added. He is thrilled to officially welcome Bloom to the Curaleaf family on behalf of the company.
“We are very excited to complete our acquisition of Bloom,” says Curaleaf CEO Joe Bayern. “Bloom is an ideal asset to expand Curaleaf’s presence in Arizona having built a strong and profitable business by consistently delivering the highest quality products to the market. Arizona represents a significant market opportunity with strong long-term growth potential, and we believe the combination of our two companies will enable Curaleaf to accelerate our growth strategy in the state.”
Curaleaf paid an aggregate purchase cost of nearly $211 million in cash on a debt-free basis with target working capital under the terms.
Regular modifications to the purchase cost are subject to the company’s actual working capital at closure.
The acquisition will be paid in cash at close, with the approximate remaining $160 million payable via the release of three promissory notes in the amounts of $50 million, $50 million, and $60 million due on the first, second, and third anniversary of the transaction, respectively.
The company may pay the third promissory note by issuing up to 4,881,392 subordinate voting shares of Curaleaf Holdings at a set price of $13.85 per share on the third anniversary of the closure choice of the retailers of Bloom.
The notes will be secured exclusively by Bloom’s equity and assets and will not be guaranteed by any Curaleaf entity.
