Curaleaf Announces Sale-Leaseback Transaction with Freehold Properties Totaling $28.3 Million
WAKEFIELD, Mass., Aug. 26, 2019 /PRNewswire/ -- Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) ("Curaleaf"), a leading vertically integrated cannabis operator in the United States, today announced it has signed a sale-leaseback agreement with Freehold Properties valued at approximately $28.3 million for six of its properties in Florida, Massachusetts and New Jersey.
As a result of the transaction, Curaleaf will have sold a portion of its real estate assets while retaining use of the properties for cultivation, processing and retail, respectively. The sale price of $28.3 million for the six properties covers initial investment plus all tenant improvements made to date and the proceeds will go towards Curaleaf's continued expansion in the United States. In addition, Curaleaf intends to access further real estate capital to finance additional operational facilities and certain current expansionary construction projects.
"This transaction provides an additional stream of liquidity for us with an attractive cost of financing previously not available in our industry," said Joseph Lusardi, CEO of Curaleaf. "We are delighted to see more traditional sources of financing becoming available to the cannabis industry and intend to deploy the proceeds to continue our rapid expansion and create shareholder value."
About Curaleaf Holdings
Curaleaf Holdings, Inc. is the leading vertically integrated multi-state cannabis operator in the United States. It is a high-growth cannabis company with a national brand known for quality, trust and reliability. The company is positioned in highly populated, limited-license states, and currently operates in 12 states with 48 dispensaries, 13 cultivation sites and 12 processing sites. Curaleaf has the executive expertise and research and development capabilities to provide leading service, selection, and accessibility across the medical and adult-use markets, as well as in the CBD category through its Curaleaf Hemp brand. On May 1, 2019, Curaleaf announced the acquisition of the Select brand from Cura Partners for approximately $949 million. On July 17, 2019, Curaleaf announced the acquisition of Grassroots for approximately $875 million.
About Freehold Properties
Freehold Properties is a newly formed, internally managed real estate investment company that invests in specialized agricultural, industrial and cannabis properties leased to experienced, multi-state-licensed operators. The Company's management team, board of directors and strategic advisors have extensive experience in the cannabis industry and in founding and operating a publicly traded real estate investment trust. Freehold's investment strategy includes a focus on best-in-class and well-capitalized multi-state operators (MSOs) with vertically integrated property types from cultivation to production to retail dispensary.
Dan Foley, VP, Corporate Finance and Investor Relations
Megan Bishop, SVP
FORWARD LOOKING STATEMENTS
This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as "plans", " expects" or, "proposed", "is expected", "intends", "anticipates", " or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. More particularly and without limitation, this news release contains forward‐looking statements and information concerning the sale-leaseback agreement with Freehold Properties, Curaleaf's continued expansion in the United States and access to additional real estate capital to finance other operational facilities and certain current expansionary construction projects. Such forward-looking statements and information reflect management's current beliefs and are based on assumptions made by and information currently available to the company with respect to the matter described in this new release. Forward-looking statements involve risks and uncertainties, which are based on current expectations as of the date of this release and subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Other factors that could adversely affect our business and prospects are set forth in our public filings with the Canadian Securities Exchange. Forward-looking statements contained herein are made only as to the date of this press release and we undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. We caution investors not to place considerable reliance on the forward-looking statements contained in this press release.
SOURCE Curaleaf Holdings, Inc.
Released August 26, 2019