Curaleaf Completes The Acquisition Of Grassroots Creating The World’s Largest Cannabis Company

Market Leading U.S. Presence Across 23 States with Over 135 Dispensary Locations and Licenses

Mitchell Kahn, Grassroots Co-Founder and CEO, Appointed to the Curaleaf Board of Directors

MASSACHUSETTS:  Curaleaf Holdings, the largest vertically integrated cannabis operator in the United States, today announced that it closed its milestone acquisition of GR Companies the largest private vertically-integrated multi-state operator in the United States, on July 23, 2020.

With completion of the acquisition of Grassroots, Curaleaf is the world’s largest cannabis company by revenue and the most diversified vertically integrated cannabis company in the United States, the world’s largest cannabis market. The transaction expands Curaleaf’s presence from 18 to 23 states, with the combined company having affiliated operations spanning over 135 dispensary licenses, 88 operational dispensary locations, over 30 processing facilities and 22 cultivation sites with 1.6 million square feet of current cultivation capacity. Curaleaf’s expanded geographic dispensary presence now offers access to medical or adult use Cannabis to more than 192 million people, or roughly two-thirds of the United States population.

“The successful acquisition of Grassroots marks Curaleaf’s expansion into new vertically integrated markets in the Midwest, firmly establishing our U.S. market leadership position. This highly complementary combination brings together two companies with a shared vision for enhancing patients’ and customers’ lives with high-quality cannabis wellness and lifestyle products. I’d like to welcome all our new Grassroots colleagues, patients and customers to the Curaleaf family as we pursue our mission of improving lives by providing clarity around cannabis and confidence around consumption,” commented Joseph Lusardi, CEO of Curaleaf. “The integration of Grassroots is expected to be immediately accretive to our financial performance, with our unprecedented scale providing significant opportunities to leverage Curaleaf’s powerful consumer brands as well as new form factor innovations across our expanded national presence.”

Completion of the transaction strategically accelerates Curaleaf’s expansion into Illinois and Pennsylvania, which are among the largest and fastest-growing cannabis markets in the United States. Upon close, Curaleaf will hold a leading licensed cannabis presence in state markets including ArizonaConnecticutFloridaIllinoisPennsylvaniaMarylandMassachusettsMaineNevadaNew JerseyNew YorkNorth Dakota, and Vermont.

The cultivation and processing assets in Illinois have been transferred and the formal approval to transfer certain retail assets is expected imminently. Maryland operations previously affiliated with Grassroots may be transferred to Curaleaf after expiration of the statutory hold period, subject to regulatory approval and compliance with restrictions on ownership or control of multiple cultivation, processor and dispensary licenses in the State.

Mitchell Kahn, Co-Founder and CEO of Grassroots, commented, “Both Grassroots and Curaleaf are driven by a similar, positive culture and we are excited to join forces, adding scale and a combined strategic vision to create a dominant position in the industry. This opportunity would not have come to fruition without the strength of our highly skilled executive team, who have built an impressive portfolio at an unprecedented pace, with facilities in highly competitive markets. We look forward to integrating our talent and resources to build a great consumer product company – one that is dedicated to producing and delivering high-quality, safe and effective cannabis products to the customer.”

Curaleaf Announces New Board Member

Upon closing of the transaction, Curaleaf has appointed Mitchell Kahn, co-founder and CEO of Grassroots, to the company’s Board of Directors effective immediately. The appointment of Mr. Kahn expands the Curaleaf Board of Directors from five to six members.

“On behalf of the Curaleaf Board of Directors and management team, we are pleased to welcome Mitch to the Board. As a co-founder of Grassroots, he brings an impressive track record for success in building the largest private, vertically integrated U.S. multi-state cannabis operator. Combined with his deep experience across commercial real estate as well as the legal field, Mitch adds significant expertise and insight that will be vital as we extend our market leadership position and drive long-term shareholder value,” said Boris Jordan, Executive Chairman of Curaleaf.

Mr. Kahn co-founded Grassroots Cannabis in 2014 and brings more than 20 years of senior executive experience. He currently serves as Principal and CEO of Frontline Real Estate Partners, for which he is also a Founder, and previously served as President and CEO of Hilco Real Estate. Mr. Kahn is a CPA, as well as an attorney who has formerly practiced real estate law. He is a graduate of the University of Wisconsin, School of Business and Northwestern University, School of Law.

 

Altitude Investment Management Closes Cannabis Fund I at $30M

NYC Based Cannabis Investment Firm Successful Fund I Raise, looks to Fund II

NEW YORK: Altitude Investment Management announced that it will close Fund I on November 30, 2018 with $30 million raised. Fund I commenced March 1, 2018 and is currently invested in 16 companies which emphasize the fund’s focus on investing in a diverse range of early-stage to growth companies supporting the fast-growing legal global cannabis industry. Altitude is led by John Brecker, Jon Trauben, Michael Goldberg, and Roderick Stephan. Collectively, the partners have over 100 years of fund investment management experience and have managed investor capital in the alternative asset management space for the majority of their careers.

“Over the past year we have watched the global legal cannabis market grow, change, and begin to mature,” says partner John Brecker. “At Altitude, we believe in the long-term growth of the industry––our portfolio strategy rests on this premise and we are confident that the evolution of the legalized industry will continue to provide compelling global investment opportunities.”

As Fund I continues to deploy its capital throughout 2019, Altitude will be launching Fund II in Q1 2019. Fund II will continue Altitude’s focus on the ever-expanding growth opportunities within the global cannabis market with investments in companies that touch the plant as well as ancillary businesses supporting the industry. Altitude seeks to raise in excess of $100 million for Fund II.

Partner Michael Goldberg goes on to say, “As the cannabis industry matures, more companies will require significant growth capital to fund product, service and geographic expansion. In addition, increasing competition will create the need for consolidation, merger and acquisition and distressed investment opportunities. A larger capital base in Fund II will ideally position Altitude to take advantage of these opportunities.”

Fund I’s portfolio consists of some of the leading firms spanning the North American cannabis industry with concentrations in plant-touching operators/brands/distribution and non-plant-touching companies providing compliance, advertising/marketing, ag-tech and data solutions including:

  •  BDS Analytics, the leader in cannabis business intelligence.
  •  Canndescent, a leading California ultra-premium brand with world class management and best practices from consumer-packaged goods, advanced agriculture, and luxury lifestyle marketing.
  •  C4 Distro, a leader in the California cannabis distribution market that provides quality distribution services to California’s extremely fragmented market of suppliers and retailers.
  •  Enlighten, the leading in-dispensary digital marketing platform.
  •  Flowhub, a leading seed-to-sale compliance and robust point-of-sale SaaS platform in partnership with Hewlett Packard.
  •  Front Range Bio, an agricultural biotech company that specializes in tissue culture propagation of high value crops at industrial scale to improve reliability, efficiency, and safety.
  •  GrassRoots, a fully-licensed, vertically-integrated multi-state cannabis company active in cultivation, extraction, manufacturing, branding, and retailing.
  •  Loud Pack Farms, a leading California vertically-integrated cannabis consumer products company with a family of brands including Loudpack, Kingpen, Double Barrel and Honey Pot.
  •  PathogenDX, a provider of a patented DNA-based disruptive testing technology for state mandated microbial testing and environmental screening.
  •  Segra, a Canadian plant biotechnology company that specializes in industrial-scale plant micropropagation and plant genotyping services.
  •  Würk, which helps cannabis companies provide the necessary human resources and payroll infrastructure to manage their employee’s needs and to stay compliant with government regulations.

Partner Jon Trauben sums up Altitude’s Fund I strategy by saying: “Altitude focused on the industry as a whole – investing in the best management teams and business strategies of companies that will be foundational to this emerging industry. We sought reasonable valuation entry points taking advantage of early illiquidity and inefficiency due to the existing federal prohibition. As the cannabis market matures, Altitude believes that its portfolio companies will benefit from a rapidly growing global market, continued relaxation of prohibition, and the acceptance of cannabis as a medical, health and wellness, and adult-use recreational product.”

The Medical Cannabis Finish Line Is In Sight

image011By Shawn DeNae

The stage is set, the contenders are in place and we either cross that finish line by legitimizing medicinal use, cultivation and dispensing of medical cannabis in law or it’s finished all together.

 

A dedicated group striving to protect medical cannabis access in Washington State gathered on Thursday as starters in a sprint.  Kari Boiter, the Americans for Safe Access National Advocate of the Year, lead the discussion with bullet strength detail.  [Read more…]