Curaleaf buying Canadian cannabis operator with eye on global markets

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Curaleaf Holdings is continuing its international expansion by signing a deal to acquire Northern Green Canada, a licensed cannabis producer focused primarily on meeting demand in the import-export market.

The financial terms of the deal were not disclosed.

The planned acquisition provides the New York-based multistate operator with a strategic supply-chain advantage in key growth markets, the company said, such as:

  • Germany.
  • Poland.
  • United Kingdom.

The deal, which comes about one month after Curaleaf bought Polish medical cannabis operator Can4Med, also establishes a presence in Australia and New Zealand, according to a news release.

Northern Green Canada, which is privately owned, says 95% of its sales were attributed to international markets in 2023. The company did not disclose its sales.

The company’s facility in Brampton, Ontario, is European Union-Good Manufacturing Practice (EU-GMP) certified. EU-GMP is an essential step to exporting cannabinoids to global markets.

The date on the certificate is September 2022.

Canada is currently the world leader in exports of medical cannabis that is not clinically proven.

In the 2022-23 fiscal year, which ended in March 2023, Canada exported medical cannabis products worth approximately 160 million Canadian dollars ($118 million), a 50% increase over 2021-22’s CA$107 million, according to exclusive MJBizDaily reporting.

Australia and Israel were the top markets for Canada’s cannabis exporters that year.

In its release, Curaleaf said Northern Green Canada has consistently supplied high-THC, non-irradiated flower to the German market, which is expected to experience substantial growth after cannabis was removed from the country’s narcotics list.

The MSO also said Northern Green Canada (NGC) is increasingly supplying Australia and New Zealand.

“We expect the NGC acquisition to be a highly accretive deal that marks Curaleaf’s first step into the Australasian markets, creating a true global cannabis company with global brands,” the company’s executive chair, Boris Jordan, said in a statement.

“It allows Curaleaf to safeguard our position in Europe, enhancing our supply chain while increasing our margins.

“The opportunity in Germany alone cannot be understated, and we continue to prepare strategically for that moment and beyond.”

Juan Martinez, head of Curaleaf International, said the deal to buy Northern Green Canada will complement the company’s Portuguese cultivation and processing assets.

“With the addition of NGC’s indoor non-irradiated flower, coupled with existing production from Portugal that can be quintupled as demand dictates, Curaleaf will have ample high quality GMP supply and future expansion capacity to meet growing market needs.

Separately, Curaleaf said earlier this month it agreed to sell its adult-use store in Maine. The MSO still has four medical marijuana stores in Maine.

Subordinate voting shares of Curaleaf Holdings are traded as CURA on the Toronto Stock Exchange.