Cannabis Investment
CuraLeaf partners with Four 20 Pharma
A leading U.S. provider of cannabis consumer products, Curaleaf of Wakefield, MA, announced today that it will acquire a 55 percent stake in Four 20 Pharma, one of Germany’s largest cannabis operators.
According to a press release, Curaleaf plans to acquire Four 20 Pharma within two years of the start of adult use in Germany.
According to a regulatory filing, the deal is worth 19.7 million euros ($20.4 million). According to Curaleaf, Four 20 holds more than 10% of the German medical cannabis market.
With a focus on bringing top-quality flower to the market, Four 20 Pharma is a fully licensed German producer and distributor of medical cannabis licensed under EU-GMP & GDP. In 2020, the company based in Paderborn, Germany launched its own product line, “420Natural”.
"The major player in the European market"
Announcing this strategic transaction, Curaleaf executive chairman Boris Jordan said, “This strategic transaction further underscores our aspiration to be the major player in the European market and the leading global cannabis company.”
Although recreational cannabis has been legalized in Germany, many key details remain unclear about the market’s future. The German medical cannabis market is currently the largest in Europe. With adult-use legalization starting in late 2023 or early 2024, the market is expected to grow to nearly $1 billion by the end of 2024.
Upon the commencement of adult use in Germany, Curleaf’s European holding company will acquire complete control of Four 20 Pharma for $20 million. In 2017, MSO acquired Emmac Life Sciences, a European medical marijuana company.
Managing Partner of Four 20 Pharma, Thomas Schatton, added, “The team at Four 20 are thrilled to be able to leverage Curaleaf’s proven R&D expertise to help us continue delivering the best quality products to our medical patients and the promising future adult-use market.”
As long as regulatory approvals are received, Curaleaf expects to close the deal with Four 20 within two months. CURA is Curaleaf’s stock symbol on the Canadian Securities Exchange.
