|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||6.87 - 8.23|
|52 Week Range||3.88 - 11.73|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Curaleaf tumbled today after the FDA issued a warning to the company on its marketing efforts for its CBD oil, saying the company was making unsubstantiated health claims. Yahoo Finance's Zack Guzman and Heidi Chung are joined by Anna-Marie Wascher, Flat World Partners CEO, to discuss.
Shares of cannabis company Curaleaf Holdings Inc. slid 7% Tuesday, after the U.S. Food and Drug Administration issued a warning letter to the company for selling CBD-based products that it claims can treat serious diseases.
If you own shares of Curaleaf (CURLF) stock, we have good news and bad news for you. The good news: As of 2:55 p.m. EDT, Curaleaf stock is down "only" 5%. The bad news: Earlier today, it was down as much as 14%, so if you sold there, you sold at the bottom. What went wrong with the stock? In a word: FDA.Earlier today, the FDA issued a warning letter to Curaleaf for illegally selling unapproved products containing cannabidiol (CBD) online with unsubstantiated claims that the products treat cancer, Alzheimer’s disease, opioid withdrawal, pain and pet anxiety, among other conditions or diseases. Curaleaf must respond within 15 business days and notify the Agency how it will correct these violations.The question racing through the Street: Is now the time to run for the hills, or should you take advantage of share weakness?Seaport analyst Brett Hundley views the FDA letter as a "non-event" for the company and believes the stock sell-off is premature. The analyst reiterates a Buy rating on Curaleaf stock, with a price target of $11.00, which implies nearly 50% upside from current levels. (To watch Hundley's track record, click here)Hundley commented, "We view any weakness in CURLF shares as near-term buying opportunities for investors. Our view is shared across many other names in the North American cannabis space, today. For numerous months now, the space has been plagued by selling pressure related to retail investor relocation...to regulatory disappointment...to profitability delays...to renewed questions over credibility. For those willing to look forward, we see a number of positive catalysts on the horizon.""The tone at today's Senate subcommittee hearing on banking reform was very positive, in our view; any forward movement by Congress could open the space up to more pronounced involvement of the institutional investor community, helping valuations greatly. The FDA is under immense pressure to get CBD regulations into place, and there is potential for guidelines to come to market by this fall, according to the agency. We see potential for agent risk to be improved in coming months, as more management positions change over to experienced individuals," the analyst added.Hundley is certainly not the first analyst with a bullish outlook for the medical marijuana provider, as TipRanks analytics showcasing Curaleaf stock as a Strong Buy. With an average price target of $15, analysts clearly think the stock could double in the next 12 months. (See Curaleaf's price targets and analyst ratings on TipRanks)
Curaleaf's "CBD Lotion," "CBD Pain-Relief Patch," "CBD Tincture" and "CBD Disposable Vape Pen" are not considered a safe and effective tool for the conditions the company references, according to the FDA. "New drugs may not be legally introduced or delivered for introduction into interstate commerce without prior approval from the FDA, as described in sections 301(d) and 505(a) of the FD&C Act, 21 U.S.C. 331(d) and 355(a).
Curaleaf is committed to the highest standards of quality and compliance, and will work collaboratively with the FDA to resolve all issues addressed in the agency's letter. The Company will respond to the FDA letter within the required 15 working days.
The fairy-tale 2019 for Aurora Cannabis (NYSE: ACB) stock appears to be over. ACB stock roughly doubled in the first three months of the year. It's now down 22% in the past three months. On Thursday, the slide was capped off by a downgrade from Bank of America.Source: Shutterstock At this point, ACB stock is a risky bet, given the company's clear, near-term issues. However, there are potential solutions for ACB down the road. In fact, Aurora may still have an important role to play in long-term cannabis portfolios. * 8 Stocks to Buy That Are Growing Faster Than Amazon Aurora's Cash Burn ProblemThe primary concern for Bank of America analyst Christopher Carey was Aurora's cash burn rate. In his note, Carey said Aurora has a strong core-cannabis business. Unfortunately, investors have very little clarity on its balance sheet. For marijuana stocks, clarity and transparency are extremely important.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLike other cannabis producers, Aurora has been spending money like crazy to scale up its production and expand its business. As of the first quarter of 2019, the company had a cash balance of C$390 million. In that same quarter, Aurora burned through C$151 million of cash as its capital expenditures ramped up. If the company stays on its current trajectory, it will need more funding within the next few quarters, Carey says.To make matters worse, Aurora has a C$230 million convertible debenture that expires in Q1 of 2020 at a share price about 35% above the current level of ACB stock In other words, unless Aurora stock rallies tremendously in the next couple of quarters, Aurora will be on the hook for a C$230 million cash payment in roughly six months.Raising capital isn't necessarily a bad thing. But Bank of America's Carey says raising capital from a position of weakness is always bad news for investors."We think ACB's U.S. expansion (a core strategy, per mgmt) could, if debt is added and no partner found, require other uses of financing like equity (capital raises or deals), despite management's stated plan to slow pace of equity dilution," Carey says. Potential SolutionDespite Carey moving to the sidelines on ACB stock, he touches on one obvious near-term solution to all of Aurora's major problems.: the company needs a powerful partner.Constellation Brands (NYSE: STZ) has invested $4 billion in Canopy Growth Corp (NYSE: CGC). Tobacco giant Altria Group (NYSE: MO) has invested $1.4 billion in Cronos (NASDAQ: CRON). Tilray (NASDAQ: TLRY) has formed a $100 million partnership with Anheuser-Busch Inbev (NYSE: BUD). In fact, alcohol and tobacco companies were responsible for roughly a third of the $15 billion of total cannabis M&A in 2018.Analysts have long speculated that Aurora needs a partner with a global brand, copious resources and distribution infrastructure. Aurora even hired billionaire hedge fund manager Nelson Peltz as a strategic advisor earlier this year. Many owners of Aurora Cannabis stock are hoping Peltz will ultimately land Aurora a major partnership.If Peltz and Aurora are able to secure a partnership with a company like Philip Morris (NYSE: PM), Coca-Cola (NYSE: KO) or Heineken (OTC: HEINY), most of Aurora's problems would be solved overnight. A partner with similar resources to those firms would enable Aurora to grow into a global giant. ACB stock would also likely get a huge pop as soon as news of such a deal hit the press. How to Play ACB StockDealing with Aurora Cannabis stock is tricky at this point As Bank of America's Carey said, there's nothing wrong with Aurora's core business. But the company's balance sheet is a mess. Carey predicts that Aurora will have $200 million of sales in 2019. With a market cap of more than $7 billion, Aurora Cannabis stock is priced at about 35 times the company's trailing sales. Bank of America doesn't expect the company to become profitable until next year. ACB stock is already priced for extreme growth, leaving little room for disappointment.Aurora has plenty of uncertainty at the moment, but it's not alone. Most of the top marijuana stocks are priced for extreme growth. Yet investors have no idea what the cannabis market will look like in five years.I think that those who are bullish on marijuana stocks should bet on the cannabis industry, instead of trying to pick individual winners. Inevitably, one or two companies will likely take over the lion's share of the market. At this point, it's nearly impossible to tell which companies that will beInvestors can pick ACB stock as the winner and then lose sleep over its high cash burn and balance sheet. Or they can buy shares of Canopy, Tilray, Cronos, Aphria (NYSE: APHA), Curaleaf (OTC: CURLF) and others and assume the long-term winners will come from within that group.Diversification is that best tool for combating risk. Cannabis bulls shouldn't stress over near-term volatility. Buy a basket of cannabis stocks and evaluate them in five years.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Aurora Cannabis Stock Has a Cash Burn Problem appeared first on InvestorPlace.
Curaleaf's $875 million deal to buy Grassroots shakes up the multistate dispensary leaderboard.
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: * Last Minute Thought: Buy or Sell SNAP Stock Before Q2’19 Earnings? * Curaleaf Holdings: FDA Warning Letter Creates Buying Opportunity, Says Analyst * Buy Facebook (FB) Stock Into Earnings, Says Wedbush * All Eyes on Tesla (TSLA) Stock Ahead of Earnings; Wedbush Remains Neutral
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: * Last Minute Thought: Buy or Sell SNAP Stock Before Q2’19 Earnings? * Curaleaf Holdings: FDA Warning Letter Creates Buying Opportunity, Says Analyst * Buy Facebook (FB) Stock Into Earnings, Says Wedbush * All Eyes on Tesla (TSLA) Stock Ahead of Earnings; Wedbush Remains Neutral
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.