Curaleaf Holdings, Inc. ( CURLF ) announced Tuesday that it has signed a deal to acquire Northern Green Canada (NGC).

NGC is a Canadian licensed cannabis producer focused on expanding in the international market via its EU-GMP certification.

The company also partners with Canadian GACP cultivators to produce and distribute finished cannabis products to the domestic and global markets.

Why It Matters

Curaleaf ( CURLF ) highlighted in a press release NGC has been supplying high THC, non-irradiated flower to the German market.

Given NGC’s longstanding role as a key supplier to Curaleaf’s Four20 brand, this acquisition marks a significant milestone in Curaleaf’s expansion strategy, particularly in Europe.

The move follows Germany's recent partial legalization of cannabis which has shaken up the industry and moved marijuana stocks, leaving everyone wondering about a domino effect on other European countries.

See also: Curaleaf Reports Record Q4 Revenue Of $345M, Narrows Loss On Higher Sales, Growing Market Share

"By integrating NGC, Curaleaf ( CURLF ) can significantly increase its European margins while extending its global footprint across three continents, North America, Europe, and Australasia (Australia/New Zealand)," the press release said, referring to NGC also supplying Australia and New Zealand.

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The deal also provides Curaleaf International, which is part of Curaleaf Holdings ( CURLF ), with a "secure and consistently high-quality indoor EU-GMP flower supply, ensuring the leading position in the growing German market during a critical juncture, while also allowing the Company to maintain its leadership position in the U.K. and expand its first-mover advantage into Poland," the company continued.

Boris Jordan, the company's executive chairman and one of the keynote speakers at Benzinga’s spring cannabis event which returns to Florida next month, praised the move.

“We expect the NGC acquisition to be a highly accretive deal that marks Curaleaf’s first step into the Australasian markets, creating a true global cannabis company with global brands," Jordan said. "It allows Curaleaf ( CURLF ) to safeguard our position in Europe, enhancing our supply chain while increasing our margins. The opportunity in Germany alone cannot be understated, and we continue to prepare strategically for that moment and beyond."

Meanwhile, Curaleaf International, which has already established its presence in the European market – announced its expansion into the Czech Republic, via a new supply agreement with Astrasana Pharma s.r.o.

What's Next

The deal is expected to close in the second quarter of 2024, pending all regulatory approvals.

CURLF Price Action

Curaleaf's ( CURLF ) shares traded 2.52% lower at $5.03 per share at the time of writing on Tuesday morning.

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