Curaleaf stock is recovering from its recent fall after Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF) announced a couple of important acquisitions.
Expansion through Acquisition
Ever since medical marijuana was legalized in Canada and parts of the United States, many companies have come up that seek to dominate the new industry. Among those, American outfit Curaleaf Holdings Inc is an important player, since it is one of the handfuls of vertically integrate cannabis operators in the industry.
The company has come up by leaps and bounds over the past months, and today it made a major announcement. The company stated that it had made two key acquisitions in the US state of Arizona that has cost the company a total of $25 million.
The first acquisition is that of the vertically integrated cannabis company Glendale Greenhouse, which will bring a cannabis processing and cultivation facility under Curaleaf’s control. In addition to that, Glendale also owns a retail outlet at an attractive location. The retail store will be rebranded as Curaleaf once the acquisition is completed. The acquisition is a highly strategic one and could potentially unlock a lot of value for Curaleaf Holdings. The 20,000 square feet production facility owned by Glendale can produce 3,600 pounds of flower on an annual basis.
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Curaleaf stock is currently trading lower by 2.10% at $7.39 on the OTC market. CURA stock is up 2% and now selling at $9.68 CAD on the CSE.
Additionally, the facility is also equipped with an extraction lab, which can be used to produce cannabis derivative products. The retail outlet is spread over an area of 1,500 square feet and is located on the Agua Fria Freeway, which gets a lot of traffic. If Curaleaf so wishes, it can even expand the store to as much as 5,000 square feet when the time comes.
The other acquisition is that of Phytotherapeutics Management Services LLC and by virtue of this deal, Curaleaf Holdings will get the license for a new store located at 2175 N 83rd Avenue.
It is in a prime location as well, and once it is completed, Curaleaf will have as many as eight retail locations in the state of Arizona. The deals were completed for a total of $25.5 million, out of which, $22 million was in cash while the rest was in Curaleaf stock.
Curaleaf stock has corrected about 20% since early June after reporting disappointing Q1 results.
Featured image: Canva
