Curaleaf expands cannabis footprint in Colorado with $67 million Los Sueños purchase

Bethan Rose Jenkins, Cannabis News Writer/Editorial

Curaleaf Holdings, a Massachusetts-headquartered multistate cannabis operator, is intent on growing its footprint in Colorado’s cannabis market.

In order to accomplish this task, Curaleaf announced on May 17 that it will purchase Los Sueños Farms’ cultivation and retail assets. 

Based in Pueblo, Colorado, Los Sueños has agreed to receive 61 percent of the  proposed $67 million acquisition in Curaleaf subordinate voting shares, 29 percent in cash at closing and 10 percent in assumed debt.

During a recent news release, Curaleaf noted that an additional $8 million contingent payment “will be paid based upon operating cash flow-based targets for 2022.” 

About Curaleaf Holdings 

Curaleaf first made its foray into the Colorado cannabis market last year, at which point it purchased Denver-based edibles company BlueKudu. 

Boasting a presence in 23 states, leading medical and wellness cannabis operator Curaleaf is proud to serve more than 350,000 registered patients. The needs of patients are met through the company’s 106 owned and operated dispensaries, 30 processing sites and 23 cultivation sites.

Stock market traders and investors can find Curaleaf trading under the ticker “CURA” on the Canadian Securities Exchange and “CURLF” on the U.S. over-the-counter (OTC) markets.

About Los Sueños

Los Sueños, which owns 36 acres of rich farmland, prides itself on using organic farming practices and environmentally conscious motives to cultivate cannabis in as natural a way as possible. All four farms at Los Sueños can be found in Pueblo, Colorado. This location is emerging as a hotspot for the future cannabis industry.

According to Los Sueños’ official website, growing the plant naturally is a much friendlier choice for the air, planet, people and soil. The sun-grown cannabis company’s vision is to harvest healthy, chemical-free products that contain a minimal amount of ingredients.

Los Sueños was expected to be acquired by Denver-located Schwazze last year. However, the deal collapsed in July.

What does the Curaleaf-Los Sueños acquisition include?

As per details of the Curaleaf-Los Sueños acquisition, the leading vertically-integrated cannabis MSO will purchase a total of three outdoor cannabis cultivation sites in Pueblo. In addition to these grow plots, of which span over 66 acres, Curaleaf will also obtain an indoor cultivation space and two recreational retail stores.

“The acquisition of Los Sueños will add over 50,000 pounds per year of low-cost wholesale capacity to Curaleaf’s footprint in Colorado, which we intend to double to over 100,000 pounds, representing a significant market share,” said the Chief Executive Officer (CEO) of Curaleaf,  Joseph Bayern, in a public statement.

Curaleaf’s expanded production capacity will also “fuel the further deployment” of the company’s Select brand of cannabis products. Bayern noted that Curaleaf’s Select-branded goods are already available to purchase at 230 retailers in Colorado.

“Ultimately, our goal is to cultivate cannabis at less than $100 per pound, and this acquisition is a significant step in the right direction,” added Curaleaf’s Executive Chair, Boris Jordan, in an official statement.