Tryke Companies

Canaccord Genuity Acts as Exclusive Financial Advisor to Tryke Companies on its ~US$286 Million Sale to Curaleaf

Canaccord Genuity is pleased to announce that on November 8, 2021, its client Tryke Companies (“Tryke” or the “Company”), announced that it had entered into a purchase agreement with Curaleaf Holdings, Inc. (“Curaleaf”) whereby Curaleaf will acquire Tryke (the “Transaction”) for US$286 million in cash and stock. The Transaction is anticipated to close in the second half of 2022 and will be subject to customary closing conditions, including the receipt of approval from the applicable state regulators.

Under the terms of the agreement, Curaleaf will pay US$40 million in cash at closing, with a remaining US$75 million in cash to be paid in equal installments on the first, second and third anniversaries of the closing. The stock portion of the transaction, which consists of 17 million subordinate voting shares of Curaleaf ("Curaleaf Shares"), will also be paid in three equal installments on the first, second and third anniversaries of the closing. An incremental earnout of up to 1 million Curaleaf Shares may be paid in 2023 based on the business exceeding certain EBITDA targets for 2022.

Tryke is a vertically integrated multi-state operator with operations in Nevada, Arizona and Utah. The Company currently owns and operates six heavily trafficked dispensaries under the Reef brand, with two retail stores in Arizona and four in Nevada. The Company is expected to record nearly US$110 million in full year 2021 revenue with historic EBITDA margins in excess of 35%.

Canaccord Genuity acted as exclusive financial advisor to Tryke. The Canaccord Genuity team included Jamie Nagy, Todd Radons, Kevin Romano, Daniel Lin, and Mark Gubbels.