Curaleaf Holdings, Inc. (OTCQX: CURLF) announced today, May 6th, that the company has entered into an agreement that enables the company with the option to acquire Ohio Grown Therapies (OGT). OGT operates a fully licensed medical cannabis cultivation and processing facility in Ohio. The company received preliminary licenses from the Ohio Department of Commerce in 2018 to cultivate and process medical cannabis. The letter of agreement that the two companies have entered into opens a path for Curaleaf to acquire the licenses and the Johnstown facility for $20 million.
Joseph Lusardi, Chief Executive Officer of Curaleaf, stated: "Curaleaf's expansion into Ohio is another step in our goal to be the most accessible cannabis company in the country, providing patients with high-quality, reliable products. This transaction is reflective of our strategy to become vertically integrated with a focus on limited license markets. As the seventh most populous state in the country, Ohio is an emerging cannabis market with strong growth potential and we plan to continue pursuing opportunities that increase our exposure to this expanding customer base."
OGT is still in the construction phase of their 32,000 sq. ft. medical cannabis cultivation and processing facility. The new facility will receive assistance from Curaleaf as the company will provide advice in an advisory role. Curaleaf is expected to acquire a lease to the Johnstown facility after the second half of 2019, and the cultivation and processing licenses, after approvals have been given by relevant regulatory agencies.
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