Curaleaf cancels acquisition of Cannabist assets

Executive Summary

• Curaleaf Holdings Inc. has terminated its binding commitment to acquire The Cannabist Company Holdings Inc.'s Virginia assets.
• The termination follows a competing bid for the assets valued at $130 million plus the assumption of a $30 million lease liability, which Curaleaf determined exceeded the rational fair value of the assets.
• Curaleaf expects to receive a $3.3 million break fee upon the cancellation of the original binding commitment.

Key Details

• Transaction Status: Termination of the binding commitment to acquire The Cannabist Company Holdings Inc.'s Virginia assets.
• Competing Bid Details: A competing bid valued the Virginia assets at $130 million plus the assumption of a $30 million lease liability.
• Rationale: Curaleaf determined the competing bid amount exceeded the rational fair value for the assets after a rigorous due diligence process.
• Financial Impact: Curaleaf expects to receive a break fee of $3.3 million upon cancellation.
• Strategic Outlook: Curaleaf stated it will continue to be opportunistic and disciplined in its acquisition strategy.

Notable Quotes

• "After a rigorous due diligence process, the company determined that this amount exceeded the rational fair value for the assets."
• "Curaleaf will continue to be opportunistic and disciplined in its acquisition strategy."