Trulieve spends $66 million on Pennsylvania medical cannabis firm acquisitions


Bethan Rose Jenkins, Cannabis News Writer/Editorial

Florida’s first ever leading cannabis company is taking strides towards expanding its footprint. Trulieve, which also operates from locations spread across California, Connecticut and Massachusetts, has announced its plans to purchase two medical cannabis companies in Pennsylvania. With its new acquisition, Trulieve’s countrywide dispensary count will top 60.

An official statement published by Trulieve confirmed that the company will purchase dispensary operator Keystone Relief Centers which conducts business operations in the Pittsburgh region under the name “Solevo Wellness” and a cultivator/producer based in the city of McKeesport called PurePenn.

The latest deal will set Trulieve back $66 million a relatively fair price, considering the fact that Pennsylvania boasts one of the fastest-growing cannabis markets in the nation. Recent figures show that the number of patients descending on Pennsylvania’s dispensaries each week exceeded 150,000 in August

Trulieve’s Pennsylvania acquisitions will close at the end of the year

Both of Trulieve’s Pennsylvania acquisitions will be finalized in the fourth quarter (Q4) of 2020. The process of finalizing the purchase of PurePenn will involve an upfront payment of $46 million. This amount will constitute $27 million in subordinate voting shares and $19 million paid in cash. In addition to this, Trulieve will pay a prospective earnout of around $60 million in company shares; contingent on accomplishing targets associated with agreed-upon earnings before interest, taxes, depreciation and amortization (EBITDA).

Furthermore, Solevo will be purchased for an upfront price of $20 million. This amount will be split into two payments of $10 million one cash payment and one payment made up of shares. Trulieve’s acquisition of Solevo will also include a prospective earnout of around $15 million in company shares; contingent on accomplishing targets associated with EBITDA.

Trulieve’s Pennsylvania acquisitions will broaden cultivation opportunities

Once the deals have been officially closed, a portfolio boost will be a given for Trulieve. As a result of the company’s Pennsylvania acquisitions, a vertically integrated company will be established in Pennsylvania; bulking up its existing operations located in California, Connecticut, Florida and Massachusetts.

Additionally, the acquisitions will grant Trulieve a wealth of extra space to cultivate cannabis for product creation. By 2021, the company expects to start growing plants on 90,000 square feet of space a planned expansion that will stem from the existing 35,000 square feet of cultivation space in Pennsylvania.

Trulieve prides itself on growing plants in state-approved climate-controlled environments that are free from hazardous chemicals and pests. The cannabis company’s range of products are specially formulated to assist patients who suffer from a range of debilitating conditions and ailments, such as nausea, pain, muscle spasms, seizures, appetite loss and cancer.