Trulieve Expands Pennsylvania Footprint with Acquisition of Keystone Shops
The acquisition broadens Trulieve’s presence in Pennsylvania with three medical marijuana dispensaries in the Greater Philadelphia area, the most populated region in Pennsylvania
TALLAHASSEE, Fla., April 5, 2021 /CNW/ – Trulieve Cannabis Corp. (“Trulieve” or the “Company”) (CSE: TRUL) (OTCQX: TCNNF), a leading and top-performing cannabis company in the United States, today announced that it has entered into a definitive agreement pursuant to which Trulieve has agreed to acquire from Anna Holdings LLC a dispensary license operating under Keystone Shops (“Keystone Shops”) with locations in Philadelphia, Devon, and King of Prussia.
Key Transaction Benefits:
- Will add three fully operational dispensaries in the Philadelphia area to Trulieve’s retail footprint of 83 dispensaries nationally.
- Will expand Trulieve’s footprint in Pennsylvania, the fifth most populated and limited-license state, adding to Trulieve’s existing operations in Pennsylvania.
Trulieve continues to bolster our national expansion efforts with acquisitions that both complement our current portfolio and strengthen our long-term strategy.
Kim Rivers, Trulieve CEO
The Keystone Shops are located in a densely populated area of Pennsylvania and with their staff’s knowledgeable and customer-centric approach to patients, these dispensaries are valuable additions to our Pennsylvania portfolio.
Trulieve has agreed to acquire Keystone Shops for an upfront payment of $60 million, comprised of $40 million in Trulieve subordinate voting shares (“Trulieve Shares”) and $20 million in cash. The deal does not carry a deferred payment or an earn-out period.
The transaction is subject to customary closing conditions and regulatory approvals and is expected to close during the second quarter of 2021.
The Trulieve Shares issued in conjunction with the transactions are subject to lockup periods of up to 18 months following the closing date of the transaction.
Advisors and Counsel
Fox Rothschild LLP is acting as legal counsel to Trulieve.
About Keystone Shops
Keystone Shops was formed by President and CEO Mike Badey in 2016, and was the first medical marijuana dispensary to make a sale in southeastern Pennsylvania. Since its opening in 2018, Keystone Shops operates three dispensary locations in the Philadelphia area.
Trulieve is primarily a vertically integrated “seed-to-sale” company in the U.S. and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve-branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery. Trulieve also holds licenses to operate in California, Massachusetts, Pennsylvania, Connecticut and West Virginia. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL and trades on the OTCQX Best Market under the symbol TCNNF. Learn more at: www.trulieve.com/