Trulieve Cannabis Corp. (OTC: TCNNF), a vertically integrated “seed-to-sale” company and the first licensed medical cannabis company in the state of Florida, announced two new transactions last week. M&A activity in the medical marijuana market has been quiet throughout 2020 and 2019, after experiencing somewhat of a boom in 2018, but Trulieve Cannabis’ new deals might signal another resurgence. The company purchased Pennsylvania-based PurePenn LLC, which produces pharmaceutical-grade medical marijuana products, including concentrates, flower, oil, capsules and tinctures, and Keystone Relief Centers LLC (dba Solevo Wellness), which owns and operates three medical marijuana dispensaries in the Pittsburgh metropolitan area.

For PurePenn, Trulieve Cannabis paid $46 million upfront, comprised of $27 million in Trulieve subordinate voting shares and $19 million in cash, plus a potential earn-out payment of up to $60 million. PurePenn operates a 35,000-square-foot cultivation and processing facility in McKeesport, which is undergoing expansion to 90,000 square feet. PurePenn’s portfolio includes some of the highest THC potencies in the Pennsylvania program.

Complementary to that deal is the addition of Solevo Wellness, which offers medical marijuana products to patients with certified medical conditions, such as intractable pain, and other serious medical conditions such as glaucoma, cancer, autism, Parkinson’s disease, MS, IBS and HIV/AIDS. Solevo opened the first dispensary in Alleghany County in February 2018.

Trulieve Cannabis paid $20 million, comprised of $10 million in cash and $10 million in Trulieve shares, plus a potential earn-out payment of up to $15 million in Trulieve shares. These two deals expand Trulieve Cannabis’ footprint to its fifth state.