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Yahoo FInance's Zack Guzman breaks down how Curaleaf Holdings Inc. agreed to buy Emmac Life Sciences Ltd. for about $285 million, giving the company entry into Europe’s rapidly growing cannabis market.
ZACK GUZMAN: Breaking right now is a big acquisition in the cannabis space, the largest US operator Curaleaf announcing just a minute ago that they will be acquiring the largest vertically integrated company in Europe-- privately held integrated company in Europe-- in EMMAC Life Sciences Limited, paying $286 million for the deal here, 85% in Curaleaf stock, 15% in cash.
It's an interesting move here too, when we talk about what Curaleaf had been bracing to do here. We had talked with their chairman Boris Jordan earlier in the year about what Curaleaf wanted to do with that $300 million they raised in total earlier as they were saying, look, we were going to really invest in accelerating growth. It sounded like most of that was going to be going to states here in the US. Their company is more levered to the US, but this is an interesting move to really start to focus on the opportunities internationally.
We know that a lot of Canadian companies-- including Aphria and Curaleaf-- or sorry, Aphria and Tilray had already paired up to do so. They have operations in Europe-- mainly in Portugal the main area of focus now-- but interesting to see again, a US company-- the largest US company here in Curaleaf-- looking abroad, especially at a time when so many in the cannabis sector have been talking about legalization back here at home paying up $286 million to go and acquire Europe's leading independent vertically integrated cannabis company there across the pond, Adam.
So that's the breaking news here. Curaleaf shares were up mostly all session today, really accelerated into the close right when this news broke after the close.
ADAM SHAPIRO: All right, Guzman. Thank you for the breaking news.