Curaleaf Holdings, a vertically integrated marijuana company, has amended its deal to acquire cannabis multistate operator Grassroots.

The stock and cash transaction was originally announced in July of last year with a price tag of $875 million.

Stifel GMP analysts Robert Fagan and Andrew Partheniou said this week that the amended deal should be worth a total of approximately $700 million based on Curaleaf’s current share price.

According to a press release from Curaleaf, the amended deal for Grassroots eliminates the $75 million cash component of the original agreement and increases the Curaleaf share consideration from $40 million to $90.1 million.

The share consideration for the deal will now total about 118.9 million Curaleaf subordinate voting shares.

Curaleaf said unspecified Grassroots assets in Illinois, Maryland and Ohio will also be sold off under the updated deal “to comply with local (limitations) on license ownership.”

The completed merger will “expand Curaleaf’s presence from 18 to 23 states, with the combined company having over 135 dispensary licenses, 88 operational dispensary locations, over 30 processing facilities and 22 cultivation sites,” according to the press release.

Joseph Lusardi, CEO of Curaleaf, stated, “Today’s announcement marks another significant step forward in finalizing our acquisition of Grassroots, providing Curaleaf an important entry to highly populous, vertically integrated markets in the Midwest. The pending integration of Grassroots will solidify Curaleaf’s position as the world’s largest cannabis company by revenue and the most well-diversified, vertically integrated cannabis company in the United States, the world’s largest cannabis market. We are well positioned to continue to lead our growing industry, and we look forward to closing the transaction and serving new patients and customers in the Grassroots community.”

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