Curaleaf Announces Acquisition of Deseret Wellness

Curaleaf has announced that it has entered into a definitive agreement to acquire Deseret Wellness ,the largest cannabis retail operator in Utah, in a cash and stock transaction valued at approximately US$20 million. The Transaction is expected to close imminently, subject to customary closing conditions.

The proposed Transaction with Deseret includes three retail dispensaries located in the cities of Park City, Provo and Payson, with a combined annualized revenue run rate of US$14 million. Deseret immediately strengthens Curaleaf's retail footprint in Utah, providing the state's medical patients with a wide variety of quality products including cannabis flower, vape cartridges, edibles, and concentrates. Following the close of Deseret, Curaleaf's retail footprint will increase to four dispensaries in Utah and 150 nationwide.

Boris Jordan, Executive Chairman of Curaleaf, stated, "We are pleased to continue Curaleaf's expansion in Utah with the acquisition of Deseret Wellness. This deal represents the largest cannabis retail change of ownership in the state's history and bolsters our strong position in the market with an attractive portfolio of retail assets. On behalf of the Board of Directors and management team, I look forward to welcoming Deseret to the Curaleaf family."

Matt Darin, CEO of Curaleaf, stated, "Utah is an important emerging market for Curaleaf, and we are excited to expand our medical retail footprint in the state. Deseret shares Curaleaf's mission of expanding access to high-quality, tested and regulated cannabis products while providing patients with superior service. Deseret has built a strong and profitable business, and we believe the combination of our two companies will enhance our competitive position in the Utah market."

According to data released by the Utah Department of Health and Human Services (DHHS) Center for Medical Cannabis, the number of active medical cannabis patients in Utah increased by 51% in 2022, with 65,016 registered medical patients reported in February 2023. Utah's net cannabis sales totaled US$118.7 million in 2022, up 58.6% from the year prior.