Curaleaf Holdings (CSE:CURA,OTCQX:CURLF) solidified itself as a standout in the US cannabis market after it announced on Wednesday (July 17) its acquisition of the privately-held GR Companies (Grassroots) valued at US$875 million.

The deal has resulted in Curaleaf now calling itself the world’s largest cannabis company by revenue and the largest in the US across some operating metrics.

The cash and stock agreement is expected to close in early 2020 pending approval from shareholders as well as the board of directors from both companies. The deal has brought together “the largest public and largest private multi-state operators in the US,” the press release reads, to offer cannabis products to customers across the country.

With the acquisition, Curaleaf is getting control of Grassroots’ 61 dispensary licenses, 20 of them currently in operation, as well as 17 cultivation and processing licenses. After the merger, Curaleaf’s presence will expand to 19 states from 12. The newly combined company will have 131 dispensary licenses, 68 physical locations, 20 cultivation sites and 26 processing facilities.

Along with Grassroots’ entire portfolio, Curaleaf is also gaining access to new markets, including Illinois, which became the 11th state to legalize recreational cannabis use last month, and Pennsylvania.

The transaction puts Curaleaf in the top position among multi-state operators (MSOs) in the US now that the company has extended its reach into Arizona, California, Nevada and Ohio.

In a press release, Curaleaf CEO Joseph Lusardi said of the transaction, “(It) significantly accelerates our expansion strategy and strengthens our reach across the medical and adult-use markets.”

He added that the deal will enhance the depth of Curaleaf’s wholesale and retail platforms across the US.

This isn’t the first big move the US-based cannabis retailer has made this year. In May, it announced the acquisition of Cura Partners, owner of the Select brand of cannabis products, in an all-stock deal valued at US$948.8 million (C$1.27 billion). The deal will close sometime this year and includes Select’s adult-use cannabis products as well as all of its operations, covering manufacturing, distribution and marketing.

Robert Fagan, an analyst at GMP Securities, told the Investing News Network (INN) that the merger has given Curaleaf “a true national presence” in the US cannabis space.

“In every important state, (it has) assets now that are operational and generating revenues … whereas in some instances, other competitors have license holdings in certain states, but don’t don’t have anything operational,” Fagan said.

He added that, while recreational cannabis use still isn’t legal at the federal level in the US, the markets that exist within individual states are robust. For Fagan, this merger is a prime example of the growing interest in the US cannabis industry.

“Pretty big acquisitions are being made, large amounts of money are exchanging hands and all that without a federally permitted marketplace,” he told INN.

Once the transaction closes, Grassroots’ co-founder and CEO Mitch Kahn will serve on the Curaleaf board of directors. Matt Darin and Steve Weisman, Curaleaf’s co-founders, will join the senior management team.

The company’s Q1 results for 2019 reported Curaleaf’s total revenue at US$35.25 million, up from the US$31.96 million in the previous quarter, an increase of 10 percent.

Curaleaf share prices jumped Wednesday, closing at C$9.95, an increase of over 17 percent from Tuesday’s closing price of C$8.49. Shares rose again today, opening at C$10.19. The company’s market cap currently sits at C$3.61 billion.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article. 

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.

Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.

Keep reading... Show less

An Emerging Markets Sponsored Commentary

Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.

Keep reading... Show less

As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.

A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.

Keep reading... Show less

The product will include polyphenols known to have significant health benefits.

BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.

Keep reading... Show less

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.

The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).

Keep reading... Show less