Marijuana MSO Curaleaf completes purchase of Tryke for $181 million

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Marijuana multistate operator Curaleaf Holdings said it closed on its previously announced acquisition of Arizona-based Tryke Cos., with the final price tag amounting to $181 million in cash and stock.

That’s down from an effective price tag of $286 million when the purchase was first announced last November, reflecting the fall in the value of Curaleaf’s stock.

The acquisition of Tryke – which does business as Reef Dispensaries – means Massachusetts-based Curaleaf’s nationwide footprint now totals 29 cultivation sites and 144 dispensaries.

Tryke does business in Arizona, Nevada and Utah.

The privately held company’s holdings include:

  • Four stores in Las Vegas, Sparks and Sun Valley, Nevada.
  • Two dispensaries in Phoenix.
  • Processing licenses covering 30,000 square feet of cultivation space as well as the capacity to expand to 80,000 square feet over the next three years.

Under terms of the deal, Curaleaf agreed to pay $10 million in cash and 2.7 million shares of stock when the deal closed.

Curaleaf will then pay an additional $75 million in cash as well as 16.5 million in subordinate voting shares over the next three years, with each installment occurring on the first, second and third anniversaries of the closing.

The company said the total value amounts to $181 million.

Curaleaf could pay up to 1 million in additional subordinate voting shares in 2023 if certain financial targets are met.

The company trades on the U.S. over-the-counter markets as CURLF and on the Canadian Securities Exchange as CURA.