Curaleaf stock is one of the biggest gainers in the cannabis sector today and hits its one-month high following the news that Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF) has agreed to acquire multi-state operator GR Companies Inc.
Big Acquisition for Curaleaf Holdings
Over the past few years, Curaleaf has grown into one of the more important players in the marijuana industry, and it has done so by making intelligent moves. In a new development, Curaleaf today announced that it had reached an agreement to acquire GR Companies Inc, a multi-state cannabis company, in a mega deal.
According to the announcement, Curaleaf will acquire GR Companies in a deal worth $875 million in both stock and cash. As per the agreement, Curaleaf is going to pay $75 million in cash and $40 million worth of shares, in addition to as many as 102.8 million subordinate shares.
This is a highly strategic acquisition and is expected to expand Curaleaf’s footprint considerably. Currently, the company is present in 12 states, but once this acquisition is completed, Curaleaf will have a presence in as many as 19 states. The acquisition is expected to be completed at some point in the early part of next year. Additionally, the company will have a total of 20 cultivation facilities and 26 processing sites, not to mention its 68 operational sites and 131 licenses to open dispensaries.
Curaleaf stock is currently trading higher by 19% at $7.74 on the OTC market. CURA stock is up 19% and now selling at $10.03 CAD on the CSE.
It goes without saying that this deal is going to make Curaleaf Holdings an even bigger company in the ever-growing cannabis industry, and it remains to be seen what sort of impact it has on the company’s stock price in the future. Over the past three months, Curaleaf stock has gone through a bit of pain and declined by 35.1%.
In a press release, the Chief Executive Officer of Curaleaf, Joseph Lusardi, spoke about the importance of the GR Companies acquisition.
He said, “With a combined 68 open dispensaries, this transaction significantly accelerates our expansion strategy and strengthens our reach across the medical and adult-use markets. In addition, it enhances the depth of our retail and wholesale platform across the country. By leveraging our scale, as well as our market-leading capabilities and expertise, we will continue to deliver value for our shareholders.”
After today's big jump, Curaleaf stock is up over 46% since the beginning of this year and has outperformed the broader sector.
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