On January 4, Acreage Holdings (ACRGF) announced that it completed its acquisition of Nature’s Way Nursery of Miami, a Florida-based cannabis company. In November, both companies signed the definitive transaction agreement.
Acreage Holdings has paid Nature’s Way’s shareholders $67 million and covered some transaction expenses for the seller. Of the $67 million, $63 million was paid in cash with $10 million escrowed at the time of signing the definitive transaction agreement. Acreage plans to pay the remaining $4 million through units of High Street Capital Partners, a subsidiary of Acreage, which could be exchanged for subordinate voting shares of Acreage at the election of the holder.
Kevin Murphy—founder, chairman, and CEO of Acreage, said, “The combination of policy and demographics in Florida makes it one of the largest growth cannabis markets in the U.S. and we could not be more pleased to close this deal,” reported PR Newswire.
Acreage has started 2019 on a strong note. Year-to-date, the company has returned 15.8%. Peers Curaleaf Holdings (CURLF), MedMen Enterprises (MMNFF), and Green Organic Dutchman Holdings (TGODF) have returned 18.3%, 23.0%, and 7.7%, respectively. Also, the Horizons Marijuana Life Sciences Index ETF (HMMJ), which tracks the North American Medical Marijuana Index, has returned 7.0% while the ETFMG Alternative Harvest ETF (MJ) has returned 8.6%.