Today Curaleaf Holdings Inc. (US: CURLF / CAN: CURA) announced the acquisition of GP Companies Inc. (Grassroots). The deal expands Curaleaf’s reach as an MSO from 12 to 19 states. According to the company, this makes Curaleaf “the world’s largest cannabis company” by revenues.
No one will be more pleased with this news than Boris Jordan. Jordan’s 31% holding in Curaleaf now represents more than $1 billion in value – a genuine pot billionaire.
The Grassroots acquisition alone is an $875 million transaction. GR Companies was the largest private, vertically-integrated multi-state operator. It holds 61 dispensary licenses (20 operating today) along with 17 cultivation and processing licenses. It currently has a dominant position in cannabis markets across the Midwest.
With this acquisition, this raises Curaleaf’s overall operations to a total of 131 dispensary licenses. Of these, 68 are operational locations. Curaleaf now also boasts 20 cultivation sites and 26 processing facilities.
Curaleaf’s share price is up sharply on today’s news ($7.71 as of this writing, +18.59%). Even so, as investors can see, the stock has actually given back substantial ground in recent weeks.
(chart courtesy of Stockcharts.com)
In Curaleaf’s release, CEO Joseph Lusardi framed today’s news for cannabis investors.
Curaleaf’s multi-state operations now access a total U.S. population base of 177 million people. Meanwhile, Congress is presently holding serious hearings to end cannabis Prohibition at the federal level.
For believer’s in the cannabis space, Curaleaf will already appear to be a bargain, even with today’s gains baked into the price. Should Congress successfully legalize cannabis nationally, nobody is better positioned to quickly move into these new markets.
Curaleaf Holdings has already produced one cannabis billionaire. It may not be the last one it produces.
Published at Wed, 17 Jul 2019 16:55:19 +0000