Biggest US Cannabis Retailer Buys Europe’s Biggest Health-related Cannabis Independent


SPECULATION EMMAC Life Sciences would be the subsequent to float on the London Stock Exchange has been brought to a swift conclusion – with its acquire by major US cannabis player Curaleaf Holdings.

The deal matches Massachusetts-primarily based Curaleaf Holdings, the world’s biggest cannabis retailer, with Europe’s biggest independent cannabis firm.

The initial acquire price tag of $286m could rise to practically $350m based on overall performance.

Vertically-integrated EMMAC comprises Portuguese cultivation, EU-GMP processing, distribution, and R&ampD operations across various important European health-related cannabis markets, which includes the UK, Germany, Italy, Spain and Portugal.

one hundred Cannabis Shops

Curaleaf operates a lot more than one hundred cannabis shops in 23 US states. Boris Jordan, its Executive Chairman, stated the deal offers ‘an sophisticated base to attain scale inside the nascent European cannabis marketplace and transform Curaleaf into a definitely international cannabis customer packaged goods company’.

“The European cannabis marketplace has the possible to exceed the U.S. cannabis marketplace more than the lengthy-term and will support fuel our development for years to come,” he added.

Joseph Bayern, Curaleaf CEO, added, “Today marks a milestone moment as Curaleaf will right away turn into the US multi-state operator with the biggest European footprint.

“Based on consumption habits we have noticed in the US, we think that more than time Europe could develop to in excess of a US$120bn total addressable marketplace chance.”

Increase For Europe Cannabis

Antonio Costanzo, Chief Executive Officer of EMMAC, stated “Curaleaf’s acquisition of EMMAC is not only a substantial milestone for EMMAC, but for the European cannabis marketplace as a entire.

“With EMMAC’s science-led strategy, wealth of nearby marketplace knowledge, as effectively as our network of provide and distribution partnerships all through Europe, we are now uniquely positioned to reinforce our spot as one particular of Europe’s leaders in the production and provide of health-related cannabis, wellness CBD, hemp and other derivative goods.”

Terra Verde, EMMAC’s European marketplace cultivation facility in Portugal is one particular of the oldest licensed cannabis increasing facilities in Europe with around two hectares of cultivation.

EMMAC plans to substantially boost its cultivation capacity in 2021, and to exceed ten tons per year by 2022.

Yooma CBD Sale

The deal follows EMMAC sale of its CBD division Yooma final week and a series of listings of cannabis corporations on the LSE fuelling speculation that it would be subsequent, immediately after withdrawing from a possible listing on the NASDAQ late final year.

The initial S$286m will be paid in paid 85% in Curaleaf subordinate voting shares and 15% in money. Contingent consideration of up to US$57m will be paid in Curaleaf subordinate voting shares and money in the similar ratio primarily based upon the prosperous achievement of overall performance milestones.

Stikeman Elliott LLP and Memery Crystal LLP acted as legal advisors to Curaleaf. Eight Capital acted as monetary advisor and supplied a fairness opinion to the Unique Committee.

Canaccord Genuity Group acted as monetary advisor and supplied a fairness opinion to EMMAC, and Norton Rose Fulbright acted as legal advisor to EMMAC. EMMAC’s European legal group was led by Hill Dickinson LLP in the United Kingdom.

Curaleaf Holdings is listed on the Canadian Securities Exchange beneath the symbol CURA and trades on the OTCQX marketplace beneath the symbol CURLF.

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