London-based cannabis specialist EMMAC has signed a definitive agreement to be acquired by Canadian-listed Curaleaf (CSNX:CURA) in a deal valued at US$286 million. The initial consideration will be paid in 85% shares and 15% cash with performance based milestone payments available and split in the same ratio. Curaleaf said that the deal would help them enter European markets.
Curaleaf CEO Joseph Bayern commented: “Today marks a milestone moment as Curaleaf will immediately become the U.S. multi-state operator with the largest European footprint. Our acquisition of EMMAC will provide a strong platform for the future introduction of our Curaleaf and Select brands into the European market, all leveraging our science, R&D, formulated product and form factor innovations, as well as vast consumer insights that we have built through our leadership position in the U.S. Based on consumption habits we have seen in the U.S., we believe that over time Europe could grow to in excess of a US$120 billion2 total addressable market opportunity“.
There are potential hiccups for UK investors as Curaleaf’s recreational products offer a regulatory hurdle and have meant that UK firms including FastForward Innovations (LON:FFWD) will be required to divest their positions. Shares in FastForward were down by 11.32% to 9.53p (as of 16:00 GMT) after the news broke.