Boris Jordan Archives - Green Market Report

Adam JacksonDecember 1, 2022
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2min11141

Cannabis giant Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) laid off around 220 of its employees ahead of the Thanksgiving holiday, Business Insider first reported.

In a statement to the outlet, Curaleaf declined to say which department the cuts occurred within, though said the cuts were “a part of an effort to control costs and drive efficiencies in the face of economic uncertainties ahead.”

“I don’t like having to deliver this news, and we haven’t reached this decision easily,” Curaleaf CEO Matt Darin wrote to employees in a company-wide email, which was reviewed by Business Insider. Darin noted in the email that the company has been engaged in talks with unionized employees at affected Curaleaf locations.

The news comes does not come as much of a surprise, as Curaleaf has seen slowing growth this year amid a broader slowdown in the global economy and lulled efforts regarding U.S. federal legalization.

In a Nov. 7 earnings call, founder and chairman Boris Jordan told investors that management is “acutely aware of the economic conditions our customers are navigating.”

“As such, we are taking appropriate actions to ensure we continue driving growth and margin expansion next year, irrespective of the economic climate,” Jordan said at the time.

Curaleaf’s most recent earnings showed crimping margins and rising losses despite the company eking out on revenue expectations.

CEO Matt Darin said during the call that the company is “comfortably transitioning from the asset accumulation phase to the asset optimization phase in our evolution. Importantly, we are at this juncture by choice, not market force.”


John SchroyerNovember 16, 2022
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6min60170

This article has been updated to include clarification from Curaleaf on the statements made by Boris Jordan. 

The modern marijuana industry is headed toward massive consolidation that will eventually feature just a handful of companies atop a global supply chain, predicted Curaleaf Executive Chairman Boris Jordan during an appearance at an investor forum this week.

Jordan, speaking during Cannavest at MJBizCon in Las Vegas, told audience members that a close friend of his in the tobacco industry noted that the U.S. cannabis industry needs overlap in the supply chain to make products cheaper for consumers. That likely would lead to a similar supply chain model as tobacco, with only about four companies dominating the global market.

“This industry has to consolidate. There’s no way there’s going to be 35 or 40 or 50 or 100 cannabis companies 10 years from now,” Jordan said. “It’s probably going to be three to four large operators, all of whom are probably going to be closely doing what the tobacco industry has done, in terms of their supply chain and their costs, in order to be able to earn a very healthy margin.”

What makes the biggest tobacco companies so dominant, Jordan said, is they share resources and only differentiate on brands.

“They all use the same packaging. They all use the same paper. They all use the same machines. They all use basically everything the same, and they have different brands,” Jordan said of tobacco companies such as Altria and Philip Morris.

The tobacco companies “were able to bring (their) margins and costs so low that even in a high-tax environment, they earn a very healthy margin,” Jordan said.

Such a monumental shift may be closer than many think, he said, given what he’s hearing out of Curaleaf’s lobbying team in Washington, D.C. They indicate that the SAFE Banking Act still has a chance of becoming law this year, and that the Biden administration is focused on rescheduling cannabis within the next two years.

“We’re hearing from our people in Washington (D.C.) that they’re targeting a 2024 rescheduling of cannabis, from Schedule 1 to 3, 4, or 5,” Jordan said, adding that “there’s genuine bipartisan going on with SAFE Banking.”

If those two reforms come to pass, he said, “the two biggest impediments for the industry are gone,” referring to the 280E provision in the federal tax code and banking restrictions.

Jordan tacked on a warning, with a nod to the financial difficulties in much of the industry: “If we don’t get SAFE, you’ll see swaths of companies go out of business next year.”

Even the SAFE Banking Act, however, won’t be enough to drag publicly traded U.S. cannabis companies into profitability, Jordan indicated.

“If we get SAFE, we’re going to have a major reevaluation, but the real reevaluation will be when we get 280E (repealed). Because people need cash,” Jordan said, adding, “This industry, at some point in time, is going to be a dividend-paying industry.”

Overall, the Curaleaf executive projected optimism, both about chances for U.S. federal reform and about the opening of new markets in the next 12 months, particularly Germany, which is poised to legalize recreational cannabis.

“If they move and actually pass this, which we expect they will … that’s going to be almost an earthquake in the cannabis sector,” Jordan said about German legislation to launch an adult-use marijuana market. “I’m very excited. I think the way Germany goes, eventually the rest of Europe goes.”


Clarification from Curaleaf:

In response to the article, as posted, a spokesperson provided the following clarifying statement via email on behalf of Curaleaf:

We would like to clarify some of the misinterpretations surrounding the remarks Chairman Boris Jordan made during his keynote at Cannavest yesterday.

Curaleaf supports a diverse and inclusive industry; in fact, Boris has repeatedly said there is and should be room for players of every size in this industry. Curaleaf supports many brands on our shelves, and has
partnered with minority and small business operators, craft, and legacy farmers. We are hopeful that the federal government authorizes an industry that protects state licenses and minority-owned businesses. The first step to that is safe banking.

Boris was asked about long-term predictions for the industry and commented that he believes eventual consolidation to be inevitable, and that every consumer product industry in the world has consolidated into major operators. He said he thought cannabis would likely follow a similar path as the tobacco and alcohol industries, because it is a low-margin business that needs volume. The fact is today the top 5 operators in cannabis represent less than 2% of the US cannabis market; in alcohol and tobacco the top players represent 80% of the market.


Adam JacksonSeptember 19, 2022
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4min3370

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) said that it acquired a 55% stake in Four20 Pharma, a top five German producer and distributor of medical cannabis in the European Union.

The deal is worth €19.7 million or approximately $19.7 million, according to SEDAR filings.

“We are pleased to complete the transaction with Four20 Pharma and I am personally thrilled to welcome Torsten and Thomas to the Curaleaf family,” said Curaleaf executive chairman Boris Jordan. “Our early focus on Europe has given Curaleaf a formidable strategic asset and strong foundation in one of the industry’s critical global markets.

Four 20 Pharma is one of the largest operators in Germany, having captured more than 10% market share. The company employs 41 team members and is based in Paderborn, Germany.

The allure of Germany’s nascent industry has captured the interests of the largest cannabis corporations, especially as U.S. legalization stalls while adult-use consumption in Germany is slated to roll out in early 2024.

“Curaleaf is the only U.S. MSO uniquely positioned to capitalize on the opportunity,” Jordan said.

Curaleaf said that the deal provides the company a strategic pathway to acquire complete control of Four 20 Pharma by 2026.

“Four 20 Pharma is an ideal asset to accelerate our growth in Germany as the country readies for its conversion from medical cannabis to adult-use,” said Miles Worne, president of Curaleaf International — which already happens to be the largest vertically integrated cannabis company in Europe.

“Curaleaf International continues to build our platform in eight markets, and this deal further underscores our aspiration to be a major player in the European market and the global industry leader,” Worne said.

Though Germany’s adult-use program is still in its infancy, Cantor Fitzgerald analyst Pablo Zuanic wrote in a report last month that sales could begin in early 2025.

Zuanic posited that the actual commencement of sales may be more dependent on whether imports are allowed — “a big if,” he added — or if only domestic production will end up ultimately supplying the German recreational market. Canada, the only G-7 recreational market, does not allow imports.

“If imports are allowed (more likely from within the EU only, at first, at least), we think sales could begin as soon as early 2024 (assuming potential exporting countries enact rules that allow the export of rec cannabis),” he wrote.

The currently existing medical marijuana market — which began in 2017 — has been slow to materialize, he added, with only €300 million in sales as of the report’s August publishing.

Curleaf estimated that the German market could be worth upwards of €1 billion by the end of the first year of legalization.


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