Just three months shy of its fourth birthday, Deep Roots Harvest medical and recreational marijuana business signed a definitive agreement of purchase with New York City-based Acreage Holdings through its subsidiary High Street Capital Partners, LLC for a total deal value of $120 million to be paid in common units and cash.
It is Acreage Holding’s first foray into the state of Nevada “increasing its total state footprint to 20 (including pending acquisitions) – the largest in the US cannabis industry,” according to its website.
Deep Roots is Mesquite’s only medical and recreational grow, production, and dispensary marijuana facility.
Keith Capurro, Deep Roots Harvest CEO, told the Mesquite Local News there is no firm date for the final purchase which is dependent on state regulatory clearance and approval.
“This transaction gives us the resources to expand our Mesquite facility to its fullest capacity and activate our new Las Vegas licenses at a faster rate,” Capurro said. “It also allows us to build out our West Wendover facility that was just approved for recreational marijuana sales in additional to medical marijuana sales at that location.”
When Deep Roots first opened in Mesquite with only medical marijuana grow capabilities in July 2015, it had 25 employees. It began production and public dispensary sales in October 2016. Capurro said there are now 120 employees at the location with plans to hire more in the future.
“This purchase agreement will give our employees more jobs and more opportunities,” Capurro said. “It will give them a chance to increase their knowledge and expertise of the industry at a faster rate. It will also provide more educational opportunities for our employees.”
Capurro said Deep Roots was awarded five new dispensary licenses in December, four in the Las Vegas area and one in Reno, bringing the company’s state-wide total to seven dispensary locations. The company also has additional grow and production state licenses that are not active at the current time.
Deep Roots recently opened an expanded dispensary at its Mesquite location in March and has plans to expand its grow and production capacity at its facility on Willis Carrier Canyon Drive.
“Marijuana sales have outgrown all our expectations since we opened,” Capurro said. “We anticipate this transaction with Acreage Holdings will generate more revenues for the community.”
The city of Mesquite first projected $240,000 in annual tax revenues from Deep Roots operations. According to Mesquite’s City Manager Andy Barton, the city is now projecting close to $750,000 in annual tax receipts.
According to its website, “Acreage Holdings is the largest vertically integrated, multi-state owner of cannabis licenses and assets in the U.S. with respect to the number of states with cannabis related licenses, according to publicly available information. Acreage owns licenses to operate or has management services agreements with license holders to assist in operations of cannabis facilities in 20 states (including pending acquisitions).”
Acreage Holdings Board of Directors include former Speaker of the U.S. House of Representatives John A. Boehner, former Governor of Massachusetts William F. Weld, and Brian Mulroney who was the eighteenth Prime Minister of Canada and leader of the Progressive Conservative Party of Canada. Kevin P. Murphy is currently a Managing Member of High Street Capital Partners Management, the Managing Member of Acreage Holdings, and Chief Executive Officer of Acreage Holdings.
Acreage Holdings, Inc. (“Acreage”) is listed on several stock exchanges including (CSE: ACRG.U) (OTC: ACRGF) (FSE: 0ZV). It’s 52-week stock price range is $11.99 to $28.30 according to its website.
