|Bid||0.00 x 0|
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|Day's Range||7.68 - 8.09|
|52 Week Range||3.88 - 11.73|
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While this has certainly been an action-packed week in the marijuana industry, perhaps the biggest news is that Curaleaf Holdings (CURLF) has acquired a privately held U.S. multi-state cannabis producer called Grassroots for $875 million. With the announcement, CURLF’s stock skyrocketed and left investors and analysts alike buzzing about the notion of the combined entity.Headquartered in Chicago, Grassroots operates 20 dispensaries, while holding licenses for 61 total stores and 17 cultivation and processing facilities. With the Grassroots assets, Curaleaf will possess 131 dispensary licenses and be active in 19 U.S. states, adding four central states including Illinois and Michigan to its previously East and West Coasts footprint.Seaport analyst Brett Hundley expressed his enthusiasm for the deal, reiterating his Buy rating for CURLF stock, along with an $11 price target. (To watch Hundley's track record, click here).Hundley references Grassroots’ market-leading position and key talent as core strengths of the acquisition. Specifically, the analyst points to Grassroots’ strategic positioning within “important limited-licenses states like Illinois.” Access to Illinois opens Curaleaf to a state with high barriers to entry which is especially fertile given that the state will legalize recreational marijuana sales on January 1, 2020. In terms of Grassroots’ key talent, co-founder and CEO Mitchell Kahn will benefit CURLF as the company works toward attaining new licenses in other U.S. states. The analyst expects him to be an asset as a Curaleaf board member due to his background in real estate development and deal-making in addition to his status as a CPA and attorney.Beyond the marketplace synergies created from the Grassroots deal, Curaleaf signed an agreement in May to buy privately held Cura Partners for $949 million in stock. The still-pending acquisition will give CURLF access to Cura Partners’ popular Select line of cannabidiol products, furthering the companies reach and exposure. With all these strategic pieces in place, Hundley questions whether Grassroots will initially drag FY2020 EBITDA numbers for Curaleaf as it works to build out its footprint. While Hundley views this as a near-term potential headwind, the analyst ultimately expects “Grassroots to add ~$125MM in revenue for 2020, potentially bringing pro forma FY2020 CURLF sales up over the $1B mark.”With the Grassroots acquisition expected to close early next year and the Cura Partners acquisition still pending, the Street is unwaveringly bullish. TipRanks analysis of three analysts shows a Strong Buy consensus, with all three analysts saying Buy in the past three months. The average price target among these analysts stands at $19.67, which represents ~98% increase from current levels.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here.Read more: More Gains Ahead for Cannabis Stock Curaleaf More recent articles from Smarter Analyst: * Curaleaf Helping to Put U.S. Cannabis Sector on the Map * Netflix’s (NFLX) Original Content Strategy Is Failing; The Stock Is Overvalued * Marijuana Stock KushCo (KSHB): Potential Catalysts Vs. Risks * Evercore Continues to Hold a Bullish View on Bank of America (BAC) Stock
In one fell swoop, Curaleaf (CURLF) upset the balance in the cannabis sector. The U.S. multi-state operator (MSO) announced today an $875 million acquisition of Grassroots that promises to change the balance of power in the U.S. and around the globe. Without the rich valuations, Curaleaf or other MSOs remain attractive investments as market leaders that aren’t valued that way.GrassrootsCuraleaf is spending ~$875 million to acquire GR Companies that owns Grassroots. The deal includes 102.8 million shares and ~$115 million in cash.Grassroots has a portfolio of 61 dispensary licenses and 17 cultivation facilities. The company has 20 dispensaries in operation now and provides Curaleaf with substantially more access to big cannabis markets like Illinois and Pennsylvania. As well, the deal provides access to new markets in Arkansas, Michigan, North Dakota, Oklahoma and Vermont.After the merger, Curaleaf will have a massive 131 dispensary licenses, 68 operational locations, 20 cultivation sites and 26 processing facilities. In total, Curaleaf will expand operations to 19 states from only 12 now.For Q1, Grassroots had $12 million in revenues and the Curaleaf pro-forma revenues were an incredible $87 million. The company lists itself as the market leader by revenues, but the other companies aren’t listed based on pro-forma numbers. In this case, Curaleaf includes both Grassroots and Select deals that aren’t approved yet.(Source: Curaleaf presentation)The important part of the story is that Curaleaf will have market access to 177 million people now. A lot of the Canadian LPs only have access to slightly below 40 million people in Canada and have looked to expensive global expansion to make up for the lack of domestic consumers.Market ValueThe more important story than whether Curaleaf has a larger revenue base is the comparative market valuations. The U.S. MSOs have offered the best valuations with Curaleaf having a proposed market valuation of $4.5 billion and a Q1 revenue run rate of $350 million with tons of growth ahead. The U.S. stocks trade at 10x trailing revenues while the Canadian companies trade at 10x forward revenues.Curaleaf will have the largest U.S. market valuation, but the market leaders in Canada still have market values 2-3x that of the U.S. companies. As Cresco Labs (CRLBF) and Harvest Health (HRVSF) close acquisitions, the stock market will start seeing the value in the U.S. companies.(Source: Curaleaf presentation)As a stand-alone company, analysts were forecasting revenues topping $700 million in 2020. These combinations should push Curaleaf estimates far in excess of $1 billion in annual revenues and push the 2021 numbers towards $1.5 billion and possibly even close in on $2.0 billion.Eventually, federal legalization will allow for these stocks listing on major U.S. stock exchanges that will boost market valuations. The merged operations will provide cost synergies and brand benefits that will further allow Curaleaf and other large MSOs to stand out in a crowded market.TakeawayThe key investor takeaway is that Curaleaf is building a cannabis market leader without the related rich market valuation typical of fast-growing markets. As these large domestic cannabis deals close over the next year and the MSOs gain market size and brand recognition, the stock valuations will eventually flip with the Canadian LPs.The stock is up 17.5% on the news and more gains are ahead for Curaleaf.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here.Disclosure: No position. Read more: Why It’s Time to Become Bullish About Curaleaf More recent articles from Smarter Analyst: * Curaleaf Helping to Put U.S. Cannabis Sector on the Map * Netflix’s (NFLX) Original Content Strategy Is Failing; The Stock Is Overvalued * Marijuana Stock KushCo (KSHB): Potential Catalysts Vs. Risks * Evercore Continues to Hold a Bullish View on Bank of America (BAC) Stock
On Wednesday, Curaleaf Holdings announced that it had entered into an agreement to acquire GR Companies, also called Grassroots Cannabis.
Cannabis operator Curaleaf Holdings, Inc. (OTC: CURLF) (CSE:CURA) said Wednesday it has entered into an agreement to acquire multi-state operator Grassroots for $875 million in cash and stock. The deal will position Curaleaf as the biggest cannabis company in the world by revenue. Grassroots is a private company known for its cannabis products and its retail brand Herbology.
Massachusetts-based cannabis company Curaleaf Holdings Inc. said Wednesday it was buying multi-state operator GR Companies Inc. in a deal valued at $875 million in cash and stock. Under terms of the deal, Curaleaf will pay $75 million in cash and provide 102.8 million subordinate voting shares and $40 million worth of shares. The acquisition, which is expected to close in early 2020, will increase Curaleaf's presence to 19 states from 12, including Illinois, which legalized adult-use cannabis in June. The combined company will have 131 dispensary licences, 68 operational locations, 20 cultivation sites and 26 processing facilities. Curaleaf's U.S.-listed shares have tumbled 35.1% over the past three months, while the ETFMG Alternative Harvest ETF has lost 11.7% and the S&P 500 has gained 3.6%.
WAKEFIELD, Mass., July 17, 2019 /PRNewswire/ -- Curaleaf Holdings, Inc. (CURA.CN) (CURLF) ("Curaleaf"), a leading vertically integrated cannabis operator in the United States, today announced it has signed a definitive agreement to acquire GR Companies, Inc. ("Grassroots"), the largest private vertically-integrated multi-state operator, in a cash and stock deal valued at approximately $875 million. This transaction solidifies Curaleaf's position as the world's largest cannabis company by revenue and the largest in the U.S. across key operating metrics. The highly complementary acquisition brings together the largest public and largest private multi-state operators in the U.S. to offer a full range of products to consumers in states across the country.
YOLO's management team announced the addition of MSOs to the fund's roster one day after the debut of The Cannabis ETF (NYSE: THCX), the newest New York-listed marijuana ETF. YOLO is the first cannabis ETF trading in the U.S. to include MSOs. MSOs “are U.S. based companies directly involved in the legal production and distribution of cannabis in states where approved,” according to a statement from AdvisorShares.
Curaleaf Holdings, Inc. (CSE:CURA) (OTCQX: CURLF ) on Wednesday announced two new appointments in executive positions. Both appointments are effective June 24. Dave Johnson was appointed President of Curaleaf ...
Dave Johnson has been appointed President of Curaleaf Hemp, and Troy Morgan has been appointed Senior Vice President of Compliance. "Our Curaleaf Hemp and Bido brands have become consumer favorites and attracted the attention of major retailers across the country," said Joseph Lusardi , Chief Executive Officer of Curaleaf.
The announcement today that Curaleaf will aquire Glendale Greenhouse and Phytotherapeutics Management Services appears to have increased investor confidence in the stock. Curaleaf Holdings (CURLF)(CURA) was trading in positive territory today.
Today, Curaleaf Holdings (CURLF)(CURA) announced that it agreed to acquire Glendale Greenhouse and Phytotherapeutics Management Services, both located in Arizona, for a combined value of $25.5 million.
The vertically-integrated cannabis operator entered into an agreement to acquire Glendale Greenhouse, which operates a cultivation and processing facility, and a prime retail location. The other acquisition involves Phytotherapeutics Management Services, which owns a retail license and a dispensary in Arizona. Through the acquisition of Glendale, Curaleaf will get access to a 20,000 square-foot multi-level cultivation center with an estimated annual capacity of 3,600 pounds of flower.
WAKEFIELD, Mass. , June 27, 2019 /CNW/ -- Curaleaf Holdings, Inc. (CSE: CURA /OTCQX: CURLF), a leading vertically integrated cannabis operator in the United States , today announced that it has made two separate acquisitions in Arizona for combined consideration of $25.5 million . Curaleaf entered into an agreement to acquire Glendale Greenhouse, a vertically integrated cannabis business operating a cultivation and processing facility, as well as a prime retail location, with plans to rebrand as Curaleaf after the transaction closes. Glendale Greenhouse holds the master lease on the 15,000 square-foot multi-tenant building where the dispensary is located.
Prior low-level convictions for marijuana possession will be pardoned. Amid this news, one would expect marijuana stocks to run higher, but that’s not happening. Just like a doctor does X-rays to see what is going on inside the human body, investors can do an X-ray of marijuana stocks to figure out what is really going on.
The CEOs of the leading marijuana companies have their eyes set on two states to follow Illinois in legalizing recreational marijuana.
After Canopy Growth shares tanked 8% following disappointing earnings, CEO Bruce Linton said he thinks the company will become a leader the CBD market.
After the recent acquisition of Select for $950 million, Curaleaf CEO Joseph Lusardi believes his company is poised to take over the cannabis industry.