Curaleaf stock is up over 8% today as Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF) announced the opening of its 26th Florida dispensary in Port Charlotte.
Commitment to Rapid Expansion
Curaleaf Holdings currently has the largest dispensary footprint in the US with 49 locations across the nation, and today's announcement reaffirmed the company's commitment to rapid expansion in Florida, where 26 of those 49 locations are now based. "It's part of our continuing effort to expand our footprint in Florida to provide patients with access to Curaleaf's premium medical cannabis products and educational resources," said Joe Lusardi, Curaleaf CEO. Curaleaf stock is currently valued at $7.63.
Florida is cited by some analysts as being America's most competitive cannabis market, so Curaleaf's dominance in this area has seen promising returns for investors in Curaleaf stock. Florida regulations mean that there is a limit of 22 companies that can receive licenses, and each license holder is only allowed to operate a maximum of 35 dispensaries until that ceiling expires next year. This system enables companies to scale up quickly and become vertically integrated, of which Curaleaf Holdings has taken full advantage, making it a very dependable pot stock.
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Curaleaf Stock Not Immune to Faltering
Despite its strong position in the market, Curaleaf stock is not immune to faltering. In July, the company's shares dropped 10% after it was handed a warning letter from the FDA for making unsubstantiated claims about the treatment abilities of its CBD products. “Selling unapproved products with unsubstantiated therapeutic claims — such as claims that CBD products can treat serious diseases and conditions — can put patients and consumers at risk by leading them to put off important medical care,” said the acting FDA commissioner
Curaleaf stock is still well valued at $7.63 in spite of the controversy and could be set to benefit massively from the rapidly expanding CBD market if it stays within regulatory guidelines. The CBD market is expected to be worth $20 billion USD by 2024, and given Curaleaf's extensive range of CBD-infused goods, from hand cream to pet care products, perhaps this is one pot stock with a bright future.
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