Cannabis multistate operator Curaleaf Holdings completed its acquisition of Northern Green Canada, a licensed producer in Ontario whose focus has been on international markets.
The terms of the acquisition include an initial payment at closing of Curaleaf’s subordinate voting shares valued at roughly $16 million (22 million Canadian dollars), according to a Monday news release.
The deal also includes an earnout based on the 2024 performance of Northern Green Canada (NGC) worth up to 50%, paid in cash and additional shares.
Curaleaf said it made the move to “amplify” its strategic advantage in European markets, including Germany, Poland and the United Kingdom.
It also gives the New York-based MSO a foothold in the emerging markets of Australia and New Zealand.
“We are thrilled to welcome NGC formally to the Curaleaf family of global brands,” CEO Boris Jordan said in a statement.
“This is an incredibly important deal for our international expansion strategy, as we’ll be able to bolster our supply of high quality (European Union-Good Manufacturing Practice) EU-GMP certified flower immediately to key European markets as well as enter the fast-growing markets of Australia and New Zealand.”
Northern Green Canada, which was privately owned, has a facility in Brampton, Ontario.
The facility has EU-GMP certification – an essential step to exporting medical cannabinoids to global markets.
Canada has exported more medical marijuana than any other country in recent years.
In the past fiscal year, which ended in March 2023, Canada exported medical cannabis products worth approximately CA$160 million.
