Curaleaf has finalised its $16m acquisition of Canadian hashish producer Northern Inexperienced Canada (NGC), serving to the corporate safe its foothold in ‘key European markets’. 

Enterprise of Hashish reported final month that Curaleaf had introduced plans to accumulate NGC, one of many few Canadian hashish producers to carry EU GMP accreditation, enabling it to promote its merchandise all through Europe.

The deal has seen Curaleaf present an preliminary cost of its subordinate voting shares valued at US$16m, with an earnout set to be paid in 2025 primarily based on NGC’s efficiency this 12 months, half in money and half in additional voting shares.

“We’re thrilled to welcome NGC formally to the Curaleaf household of world manufacturers,” mentioned Boris Jordan, Founder and Govt Chairman of Curaleaf.

“That is an extremely necessary deal for our worldwide enlargement technique, as we’ll be capable of bolster our provide of top quality EU-GMP licensed flower instantly to key European markets in addition to enter the fast-growing markets of Australia and New Zealand.”

In keeping with Curaleaf, to which NGC has been a longstanding key provider, this deal will present a ‘safe and constant’ EU GMP flower provide, ‘making certain a number one place’ within the German market and enabling it to keep up its main place within the UK, whereas increasing its first mover benefit into Poland.

By integrating the Canadian firm, Curaleaf can ‘considerably enhance its European margins’, and lengthen its international attain to ‘Australasian markets’.

It’s the newest in a string of North American hashish operators to bolster their place within the quickly increasing European market, spurred by Germany’s current reform.

In keeping with Curaleaf, rising markets like Germany, New Zealand and Australia are anticipated to contribute $6.3bn in hashish gross sales by 2027.