ATLANTA and BOSTON, Jan. 14, 2019 /PRNewswire/ -- Surterra Wellness (Surterra), one of the fastest growing health and wellness companies in the United States (U.S.), and New England Treatment Access (NETA), a leading Massachusetts-based cannabis company, today announced a definitive agreement for Surterra to acquire NETA. The partnership adds a fourth significant cannabis market to Surterra's rapidly growing national footprint, which also includes Florida, Texas, and Nevada. The cash and stock transaction is one of the largest acquisitions to date in the U.S. cannabis industry.
The deal reflects Surterra's strategy to bring the industry's broadest portfolio of high-quality cannabis brands to patients and consumers across the U.S., to build out industry-leading operations and to expand upon a global platform. The companies will work together to leverage the excellence of NETA's research and development, marketing, production, compliance and administrative areas. NETA's team will continue their operations at all levels in Massachusetts, including offering its established brands to its patients and customers and partnerships with the communities. This transaction is subject to approval by the Massachusetts Cannabis Control Commission and will require certain local approvals.
"We are thrilled to partner with NETA to expand health and wellness offerings to patients and customers in Massachusetts, which is anticipated to be one of the U.S.'s most rapidly growing markets. With operations combined across four states, Surterra is positioned to grow tenfold in 2019 and realize significant profitability," said Surterra Chief Executive Officer William "Beau" Wrigley, Jr. "Since 2009, NETA's founders have been recognized as pioneers and innovators in the cannabis industry. Their wide range of premium products, extraordinary service, diversity programs and strong community partnerships set them apart. Importantly, the acquisition of NETA was founded on our aligned set of values and reputable track records."
"Under Beau's oversight, Surterra's continued growth and industry leadership will offer NETA's employees an opportunity to join in a shared vision to ascend to a leading global health and wellness company. At the same time, we continue our commitment to providing NETA'S high-quality products to our patients and customers in Massachusetts and to meeting the obligations of our Brookline, Franklin and Northampton communities," said NETA's co-founder Kevin Fisher.
"We are excited to work closely with NETA's management to build out the foundation they have established in Massachusetts. NETA's proven operational expertise will strengthen Surterra's ability to continue to execute on meaningful acquisitions and organic growth," said Wrigley.
Surterra is one of the largest U.S. providers of medical, wellness and lifestyle cannabis products, providing access to over 70 million residents across four states. The company operates 20 Surterra Wellness Centers and over 300,000 square feet of canopy throughout Florida with contracts to expand to over 500,000 square feet of cultivation by mid-2019. Demonstrating the company's rapid progression in an evolving wellness industry, Surterra grew from 100 to over 550 employees in 2018 and anticipates continued aggressive growth throughout 2019.
The NETA announcement follows a period of strategic development for Surterra and underlines its path towards continued expansion. Since closing its Series C financing round in July 2018, Surterra has reached significant milestones, including:
In 2018, Surterra raised over $200 million.
In December, Surterra launched TranquilTM in Texas, marking the company's first medical cannabis product for Texas patients seeking an effective, natural treatment option for epilepsy.
In December, Surterra added Nevada to its growing list of geographies in which it operates.
In November, business leader and entrepreneur William "Beau" Wrigley Jr., former CEO of the Wrigley Co., became the company's CEO, in addition to being the company's Chairman.
In September, Surterra reached a landmark global licensing deal with Jimmy Buffett's Margaritaville team to create a new medical marijuana brand, Coral Reefer.
About Surterra Wellness Founded in 2014, Surterra Wellness is one of the fastest growing health and wellness companies. With operations in Florida, Texas and Nevada, Surterra brings a broad portfolio of high-quality brands to meet the needs of individuals who choose the natural medical relief, wellness enhancing or lifestyle enjoyment benefits of cannabis products. Surterra offers a wide variety of medical, health and wellness products in multiple delivery options, including vaporizer pens, tinctures, oral sprays, topical creams, time released transdermal patches, and soon-to-be-launched softgels. Related link: www.surterra.com
About New England Treatment Access (NETA) NETA, LLC is the leading vertically integrated cannabis company in Massachusetts. Founded by industry pioneers whose roots in regulated cannabis date to 2009, NETA's licenses encompass retail operations in Brookline and Northampton and cultivation and processing facilities in Franklin. Across the organization, NETA employs over 450 individuals and produces more than 250 unique SKUs. NETA conducted the first legal adult use sale of cannabis east of the Mississippi and has provided cutting edge therapies and best-in-class services to over 40,000 unique Commonwealth patients since 2015.