Curaleaf stock is in the red today despite Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF) announcing that it had completed its acquisition of cannabis vape firm Select.
The closing of the Select acquisition solidifies Curaleaf's stance as the largest cannabis operator in the US in terms of operational and wholesale footprint, with 53 open dispensaries, and positions the firm to enter the accelerated growth phase. The deal represents an opportunity for synergies between Select's parent company, Cura Partners, as it combines Curaleaf Holdings' national retail locations, wellness brand, product range, and East Coast hub with Select's established lifestyle brand and leading West Coast market presence. Curaleaf stock is currently trading for $9.11.
"As we've scaled, Curaleaf has pioneered the U.S. cannabis industry, and we're incredibly excited about the future and our leadership role in it. Our entire organization is focused on accelerating our growth as a combined company with two of the fastest-growing cannabis brands in the country," said Joseph Lusardi, CEO of Curaleaf. Despite closing the Select deal, Curaleaf stock is down 3% on Monday.
Change at the Top
In addition to announcing the closing of the Select acquisition, Curaleaf Holdings has also made a host of changes to its leadership team as it gears up for the next growth phase. Select's founder, Cameron Forni, will take on the role of President of the brand, while Jason White joins Curaleaf from Select in the newly created role of Chief Marketing Officer. Mr. White previously served as Global Head of Marketing for Beats by Dr. Dre, as well as developing campaigns for LeBron James, Kobe Bryant, and Tiger Woods while at Wieden + Kennedy.
Curaleaf Stock Set for a Big Year?
Curaleaf stock had somewhat of a rocky 2019, falling from a peak of $15.00 in May to as low as $6.00 by November. However, a robust earnings report in late November followed by the closing of several high profile deals and the receipt of cultivation and retail licenses in states such as Utah and Nevada have helped the pot stock recover somewhat to its current level. Up nearly 20% in January, 2020 looks like it could be a much better year for Curaleaf Holdings and its investors.
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