Multistate cannabis operator Curaleaf Holdings secured $130 million in funding from an unidentified “strategic institutional investor” in exchange for a 31.5% equity stake in its new venture, Curaleaf International Holdings.
Curaleaf International was created to hold London-based medical cannabis company Emmac Life Sciences after a now-completed $286 million cash-and-shares acquisition announced in March, as well to “further its European expansion,” according to a news release issued Wednesday.
“The subscription will fund the entire cash portion of the Emmac acquisition consideration of $50 million with the remaining $80 million to be used to fund Curaleaf International’s current capital expenditures plan through 2022, as well as its pipeline of potential acquisitions,” the release noted.
“With its foreseeable expansion budget fully funded, Curaleaf’s new international business can focus on executing its further European expansion.”
Those plans include increasing cultivation capacity “in order to accommodate future growth related to the expansion of access to cannabis across the major European medical and adult-use, as well as export markets.”
The new strategic investor and Curaleaf have agreed that the Massachusetts-based MSO “will have control over operational issues as well as raising capital and the ability to exit the business,” according to the release.
“In addition, the strategic investor’s stake is subject to put/call rights which permits either party to cause the stake to be bought out by Curaleaf for Curaleaf equity starting in 2025.”
Former Emmac CEO Antonio Costanzo has been appointed CEO of Curaleaf International.