Curaleaf Archives - Green Market Report

Debra BorchardtMay 17, 2021
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4min6660

Curaleaf

Curaleaf Holdings, Inc. (OTCQX: CURLF) is buying the largest outdoor grow in Colorado known as Los Sueños Farms in a deal valued at $67 million. The transaction is a mix of cash and stock. Curaleaf said this will significantly expand its Colorado presence, vertically integrating within the state. The proposed acquisition includes three Pueblo, Colorado outdoor cannabis grow facilities covering 66 acres of cultivation capacity, including land, equipment, and licensed operating entities, 1,800 plant indoor grow and two retail cannabis dispensary locations serving adult-use customers. An additional contingent consideration of up to $8 million in stock will be paid based upon operating cash flow-based targets for 2022.

Boris Jordan, Executive Chairman of Curaleaf, stated, “The acquisition of Los Sueños provides Curaleaf with outdoor cannabis cultivation expertise at commercial scale and establishes our foothold in the $2.2 billion Colorado market. This deal furthers our strategy of constructing low-cost supply chains that will secure healthy margins and position us for interstate commerce when it comes. Ultimately, our goal is to cultivate cannabis at less than $100 per pound, and this acquisition is a significant step in the right direction.”

The acquisition will complement Curaleaf’s existing Colorado presence through its Select brand. Joseph Bayern, CEO of Curaleaf added, “The acquisition of Los Sueños will add over 50,000 pounds per year of low-cost wholesale capacity to Curaleaf’s footprint in Colorado , which we intend to double to over 100,000 pounds, representing a significant market share. As the largest producer of biomass in the state, this facility will also fuel the further deployment of our Select product line, which can already be found in 230 independent dispensaries in the state.”

Hexo

HEXO Corp. (NYSE: HEXO) announced it is buying 48North Cannabis Corp  (TSX-V: NRTH) in an all-stock deal valued at approximately $50 million on an enterprise value basis. 48North is a brand-led, consumer-centric licensed cannabis producer with an expansive portfolio of high-quality, accessibly-priced products available across the country. The company brands include Trail Mix, an accessibly priced brand formulated with taste and aroma-first flavor profiles and Latitude, a next-generation lifestyle platform and premium, natural cannabis collection focused on wellness, beauty, and beyond. 48North operates two indoor-licensed cannabis production sites in Ontario.

“As we continue down our path towards achieving a top two position in Canada by adult-use sales, we are looking forward to welcoming the 48North team into the HEXO family.” said Sebastien St-Louis, CEO and co-founder of HEXO Corp. “48North’s innovative product portfolio complements HEXO’s existing brands which, combined with their additional market penetration, will further strengthen HEXO’s position in the Canadian market. We expect the deal could offer up to $12 million worth of accretive synergies within one year following the close and ideally position HEXO to continue executing on our domestic and international growth strategy.”

Assuming this deal closes and the previously announced transaction with Zenabis Global Inc., which is expected to close on June 1, 2021, the combined organization would be among the leading licensed producers in terms of combined Canadian recreational sales, based on their most recent financial statements and results.

 


StaffMay 10, 2021
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6min4500

Curaleaf Holdings, Inc. (OTCQX: CURLF) reported its financial and operating results for the first quarter ended March 31, 2021. Total revenue increased by 170% to $260 million during the first quarter of 2021, compared to $96 million in the first quarter of 2020. Despite the enormous revenues, Curaleaf still delivered a net loss in the quarter of $17 million, versus a net loss of $15 million in the first quarter of 2020.

The company attributed the loss to an income tax provision of $31 million and ultimately blamed it on Section 280E of the Internal Revenue Code and, to a lesser degree, by an increase in the interest expense related to lease liabilities due to the expanded number of retail sites. The net loss for the quarter also included approximately $6 million in one-time charges which mostly include expenses associated with the equity offering and debt raise.

“Curaleaf delivered record first quarter 2021 financial results with total revenue exceeding the high-end of our guidance range as we extended our U.S. leadership, all while creating a new foundation for future international growth opportunities,” said Joe Bayern , Chief Executive Officer. “The stronger than expected first-quarter performance drove record adjusted EBITDA as well as approximately 640 basis points of improvement in gross margin year-over-year. These impressive results reflect the leverage of the strategic investments we have made across the organization in cultivation, product innovation as well as expanding our branded retail and wholesale distribution channels. Curaleaf launched a range of innovative new products to our retail and wholesale channels during the quarter, including our new Select Squeeze THC-infused beverage enhancer which marked our most successful product launch ever and represented one of the cannabis industry’s widest national product launches to date. With our revenue projected to increase to $305 million to $315 million in the second quarter, we also expect to generate significant improvements in terms of achieving positive net income and positive operating cash flows in the back half of 2021.”

Revenue Grows Across The Board

Curaleaf noted that retail revenue increased by 231% to $188 million during the first quarter of 2021, compared to $57 million in the first quarter of 2020, representing 72% of total revenue. Growth in retail revenue was primarily due to strong organic growth across Curaleaf’s footprint, the opening of six new stores across FloridaMaine, and Pennsylvania, and the rapid acceleration of revenue growth in Arizona after the introduction of adult-use sales in January of 2021.

Wholesale revenue increased 254% to $72 million during the first quarter of 2021, compared to $20 million in the first quarter of 2020, representing 28% of total revenue. Growth in wholesale revenue was due primarily to the continued national expansion of the Select brand in both the Central and Northeastern markets including MassachusettsNew YorkNew JerseyMarylandIllinois, and Pennsylvania, and the successful launch of new products such as Select Squeeze, Select Essentials, and Select Fresh. It also resulted from the strength of the Select brand in core Western markets including ArizonaCalifornia, and Oregon.

Boris Jordan, Executive Chairman of Curaleaf said, “With the acceleration of cannabis liberalization momentum at the state and federal levels, Curaleaf’s prospects for growth in the United States have never been stronger. The recent approvals of adult-use cannabis in New Jersey and New York, which are states where Curaleaf has a leading market share, will unlock vast new markets, worth an estimated $2.1 billion and $5 billion in sales respectively. We raised approximately $300 million in new capital during the first quarter to help support our ability to scale for new adult-use markets while also allowing us to be opportunistic for highly attractive assets that further strengthen our position as the global cannabis market leader.”


StaffApril 7, 2021
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5min9740

Curaleaf Holdings, Inc. (OTCQX: CURLF) has successfully completed the previously announced acquisition of the European-based EMMAC Life Sciences Limited, a deal valued at approximately $50 million in cash and 17.5 million shares of Curaleaf. Curaleaf has simultaneously established Curaleaf International Holdings Limited in Guernsey to hold the EMMAC investment and further its European expansion.

In order to speed up the process of expanding Curaleaf International, Curaleaf said it has secured an investment of $130 million from a single strategic institutional investor in exchange for a 31.5% equity stake in Curaleaf International, implying a $413 million Post Money valuation, with $80 million in cash available to spend. The company said that the subscription will fund the entire cash portion of the EMMAC acquisition consideration of $50 million with the remaining $80 million to be used to fund Curaleaf International’s current capital expenditures plan through 2022, as well as its pipeline of potential acquisitions.

“The successful completion of our acquisition of EMMAC, and the formation of our new Curaleaf International business, marks a transformational launching point for our entrance into the European cannabis market,” said Boris Jordan, Executive Chairman of Curaleaf. “Building on our market-leading position in the U.S., this transaction establishes Curaleaf as the global, pure play, cannabis market leader by revenue and geographic reach. With our single strategic institutional investor, we have set a strong foundation for Curaleaf International’s future growth trajectory. On behalf of the Curaleaf Board of Directors and management team, we are thrilled to welcome Antonio Costanzo, co-founder, and CEO of EMMAC, as the CEO of Curaleaf International, and the entire EMMAC team to Curaleaf.”

This infusion of outside capital into Curaleaf International significantly accelerates Curaleaf’s expansion plans in Europe by fully funding Curaleaf’s cash outlay for the EMMAC acquisition and providing the capital required to support Curaleaf International’s near-term European rollout. With its foreseeable expansion budget fully funded, Curaleaf’s new international business can focus on executing its further European expansion. Curaleaf and the strategic investor have entered into a shareholders’ agreement regarding the governance of Curaleaf International pursuant to which Curaleaf will have control over operational issues as well as raising capital and the ability to exit the business. In addition, the strategic investor’s stake is subject to put/call rights which permits either party to cause the stake to be bought out by Curaleaf for Curaleaf equity starting in 2025.

“As the consumer and political liberalization trends around cannabis that are sweeping the U.S. are increasingly taking hold across Europe, our expansion into the international cannabis market presents tremendous new long-term growth opportunities for Curaleaf,” said Joseph Bayern, CEO of Curaleaf. “With the European population of nearly 748 million, the potential European addressable market is more than twice the size of the U.S. addressable market. With the ability to operate our new European business across country borders, with one or two cultivation sites and one manufacturing center to serve the entire region in most cases, combined with our ability to leverage the strength of our consumer packaged goods strategies and innovations from our U.S. operations, we see enormously positive implications for our ability to quickly and efficiently scale the business across Europe .”

 


Debra BorchardtMarch 9, 2021
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6min6240

Curaleaf Holdings, Inc. (OTCQX: CURLF)  reported managed revenue increased 186% to $233.3 million in the fourth-quarter ending in December and grew 21% sequentially. The total revenue for Curaleaf was $230.35 million which increased 205.3% but missed estimates by $7.86 million. Still, the stock rose by 15% prior to the company’s earnings release and closed at $16.37.

The net loss for the quarter was $35.3 million, which was higher than last year’s net loss of $26.6 million. The fourth-quarter earnings per share were -$0.05, which missed estimates by $0.04.  The company said that the increase in losses was due to a $16.3 million increase in depreciation and amortization and a $10.5 million increase in share-based compensation, both of which are non-cash, a $25.8 million increase in income tax expense, and a $20.3 million increase in net interest expense.

For the full year of 2020, revenue grew 161% to $653 million. The net loss for the year was $61.7 million versus a net loss of $67.2 million for 2019. The decrease was a result of a $24.1 million increase in other income, which is mainly driven by gains on investments partially offset by impairment on the Eureka license, and a $52.0 million increase in the fair value of biological assets.

“Curaleaf’s record fourth-quarter results reflected the benefit of our acquisition of Grassroots, which expanded our presence into 6 new states, including high-growth markets such as Illinois and Pennsylvania as well as the continued ramp-up of Select, which is now in 17 states,” said CEO Joe Bayern. “In 2021, we expect to see the positive benefits of the transformative legalization of adult-use cannabis in Arizona and New Jersey. As we have stated, we believe New Jersey will accelerate the potential of future adult-use in key states such as New YorkPennsylvania, and Connecticut. Each of these markets present an enormous growth opportunity for us, as Curaleaf is the only MSO with a leading presence in every one of these states.”

In the fourth quarter, the company completed the acquisition of Alternative Therapies Group (“ATG”), divested Curaleaf Maryland’s assets for a total consideration of $4.0 million, and launched 32 new formulated products across form factors during the quarter.

European Move

Curaleaf also announced that it was buying EMMAC Life Sciences Limited, the largest vertically integrated independent cannabis company in Europe for$286 million to be paid 85% in Curaleaf subordinate voting shares and 15% in cash. Contingent consideration of up to $57 million will be paid in Curaleaf subordinate voting shares and cash in the same ratio based upon the successful achievement of performance milestones. The proposed transaction provides Curaleaf with a developed platform for entry into the European cannabis market.

Management Comments

Boris Jordan, Executive Chairman of Curaleaf commented, “In parallel with the announcement of our record financial results, earlier today Curaleaf issued a separate press release announcing its entrance into the European cannabis market with acquisition of EMMAC Life Sciences Limited, Europe’s largest vertically integrated independent cannabis company.  This milestone transaction will give Curaleaf a leading presence in key European medical cannabis markets including the United KingdomGermanyItalySpain, and Portugal, among others. The proposed transaction will provide Curaleaf with access to the European market of 748 million people, representing another transformational growth driver for Curaleaf for years to come.”

Mike Carlotti, Chief Financial Officer of Curaleaf, added, “Curaleaf, once again, delivered record quarterly and annual results highlighted by record Managed Revenue, Pro Forma Revenue, and a 27% sequential improvement in Adjusted EBITDA. With our successful integration of Alternative Therapies Group in October 2020 , starting next quarter, we will no longer report Managed Revenue thus simplifying our financial reporting.  Our recent capital raises further strengthen the Company’s balance sheet providing it with ample capital to pursue planned organic growth initiatives, potential investments in states that may go adult-use sooner than later and for strategic acquisition opportunities.  We believe that 2021 will be yet another record year for Curaleaf as we continue to expand our cultivation in key markets, open additional stores, expand our product and brand platforms, invest in future growth opportunities as well as see the benefit from Arizona’s recently approved adult use market and potentially New Jersey’s in late 2021.”


Taneia SurlesFebruary 12, 2021
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6min12180

Editors Note: This story is part of a month-long series for Black History Month featuring leaders in the cannabis industry.

 

With marijuana becoming more legalized over the years, those who have played a large part in the cannabis industry must be given a seat at the table. And that means there is a need for experts in diversity and inclusion to intervene on the issue. That is where Khadijah Tribble comes into play with her expertise in both the cannabis industry and diversity and inclusion.

Khadijah Tribble serves as the Vice President of Corporate Social Responsibility at Curaleaf (OTC: CURLF), the largest cannabis company in the United States. Tribble has been an advocate for various human rights initiatives, focusing on women’s rights, the LGBTQ community, veterans, and minorities. Her advocacy has led to her extensive career in diversity and inclusion, including her position at Curaleaf and founder of Marijuana Matters. The mission of Marijuana Matters is to educate the public about policies surrounding the cannabis industry and how they can impact marginalized communities. Tribble has proven herself to be a strong force in the journey to the diversification of the cannabis industry.

The Green Market Report interviewed Tribble to get insight on her position at Curaleaf and her thoughts on diversity and inclusion in the cannabis industry.

1) How did you get involved with Curaleaf?

Prior to joining Curaleaf, I founded Marijuana Matters (M2), a cannabis education and advocacy incubator, along with the Marijuana Policy Trust (MPT), a think tank focused on building an inclusive and diverse cannabis industry. I joined Curaleaf in March 2020, and I saw it as an opportunity to impact and shape an industry on the brink of its next phase of growth. I believe the cannabis industry can be a force for good. I’m proud to be a part of Curaleaf’s commitment to corporate social responsibility, particularly as regulation, policies, and opinions are still evolving.

2) What are Curaleaf’s corporate social responsibility initiatives?

Curaleaf’s “Rooted In Good” initiative focuses on three core pillars: Diversity, Equity & Inclusion (DE&I), Social Equity, and Sustainability. To be Rooted in Good is to consider the holistic health of the entire community. This initiative includes patients, employees, and neighbors, and the environments we impact, both locally and globally.

Our (DE&I) program is already underway, an internally focused approach with the critical goal of ensuring that Curaleaf reflects through its actions and decisions that it values diversity and inclusion across intersections between race, gender, sexual orientation, religion, disability status, veteran status, and socioeconomic backgrounds. The focus of our social equity initiative is on activating programs that foster repairing social harms and removing systematic barriers for people from communities most harmed by the War on Drugs and institutional oppression.

By 2025, Curaleaf aims to do business with 420 new cannabis brands, ancillary suppliers, and advocacy organizations from underrepresented communities in the cannabis ecosystem. To ensure the development of an inclusive industry, we are reaching out to populations of people touched by cannabis-related offenses. We will employ at least 10% of all 2021 new hires from this directly impacted community. This year, we are committed to contributing at least $1 million in community investment to programs that address collateral consequences associated with marijuana-related offenses.

3) What do diversity and inclusion mean to you in terms of the cannabis industry?

It means making sure that at our company that we create policies and practices that extend a wide net to include underrepresented communities. Whether it’s African American, LatinX, veterans, people with disabilities, and members of the LGBTQ community, diversity equity and inclusion means creating practices, policies, and systems inclusive of individuals from all of the underrepresented populations inside of cannabis.

4) How do Black history month and the cannabis industry intersect?

I believe it’s quite obvious that the way that cannabis has been criminalized and the impact of marijuana’s prohibition has hurt people of color, specifically black people. So, when we talk about Black History Month and the intersection of cannabis, we have to talk about the lingering negative impact of the collateral consequences associated with cannabis’s criminalization. And at Curaleaf, we believe that the most important role that we can play during Black history month is to elevate individuals from the black community in the cannabis space and amplify the voices of thought leaders in the cannabis space.  It is not our role as a company to supplant individuals who are doing this work at the intersection of cannabis and black history. It is our primary responsibility to make space. We’re doing that by amplifying voices and elevating entrepreneurs that are in the space.

As the cannabis industry grows, it is essential to represent people of underrepresented or marginalized communities. Companies like Curaleaf are taking the best steps forward by hiring experts in diversity and inclusion.

 

 


Debra BorchardtDecember 9, 2020
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5min11520

Looking back at 2020, the Brightfield Group determined the cannabis product shelf space winners. A review of the first three quarters provided a snapshot of which products cannabis consumers wanted most. This type of information is invaluable to producers and dispensary owners alike. The producers can make sure that they have these products in their portfolio and dispensaries can make sure they stock their shelves with the items that customers want.

Increased 2020 Shelf Space:

  1. Candy
  2. Cartridges/Pods
  3. Resin/Rosin
  4. Disposable Pens
  5. Baked Goods

Candy

Brightfield’s report found that since January 2020, the candy category has captured 12% of the shelf and in August held 14% of the shelf its largest position to date. The category has grown by 41% in 2020. The report also noted that the shelves saw a shift towards luxury and premium prices.  Consumers have also been drawn to natural marketing and like options that are vegan, non-GMO, and additive-free.

Top Candy Flavors:

  1. Raspberry
  2. Watermelon
  3. Strawberry
  4. Fruity
  5. Chocolate

Top Candy Brands

  • Cheeba Chews
  • Smokiez Edibles
  • Kiva Confections
  • Wyld

Vapes

Despite the vape crisis of 2019, vape products commanded 22% of the shelf space for 2020. The report found that cartridges and pods grew shelf space by 3% in 2020. 74% of these products were in 500mg packages and a majority were marketed for relaxation and stress relief. The price preference was the opposite of candy, but that’s probably because vapes in general are more expensive. Budget-priced products saw an increase in shelf space and premium-priced products saw shelf space declines.

Top Vape Attributes

  1. Relaxation
  2. Stress
  3. Focus & Creativity

Top Vape Brands

  • Stiiizy
  • Jetty Extracts
  • Raw Garden
  • Curaleaf
  • Pure Vape
  • Alpine

Resin & Rosin

THC concentrates continue to win over new consumers. The product packs a bigger punch than vapes or traditional flower that typically deliver 15%-35% THC. These concentrates can provide doses of 60%-90% THC. While dabbing shatter, wax, or crumble has been the predominant concentrate method, rosin and live resin are coming on strong. Rosin is made with a solventless method that relies only on heat and pressure to extract cannabinoids and delivering a “cleaner” dab. Live resin is made with more traditional extraction methods and preserves the terpenes. This category increased its shelf space by 3%, while the shatter, wax and crumble categories fell.

Disposable Pens

Brightfield found that while disposable pens only garnered 4% of the dispensary shelf space, distribution grew by 68% in 2020. Once again, stress relief was the top choice for this consumer. The smaller products having 300mg grabbed the most space within the category and tend to be the most affordable. It’s the product of choice among the price-conscious consumer.

Baked Goods

Marijuana brownies are the OG of cannabis consumers, but the inconsistent response time for consumers make these products less desirable. Customers may react quickly or slowly after consuming a cookie or brownie and this lack of consistency is an issue. Only 3% of the distribution goes to this category. Still, in 2020 there was a 40% increase in shelf space for baked goodies.

Brightfield’s Top ten Product Launches of 2020:

  1. Care by Design – 8:1 Vape Cartridge
  2. Claybourne Co. – 501St OG Bud
  3. Kiva Confections – Midnight Blueberry Camino Gummies
  4. Stiiizy – wedding Cake Live Resin Pod
  5. Raw Garden Sleeroy G Pod
  6. Yummi Karma – YK Drops – Draft Away
  7. West Coast Cure – Venom Og Live Resin Sauce
  8. Pacific Stone – 505 Sour Hybrid Bud
  9. Heavy Hitters – Forbidden Fruit Cartridge
  10. Connected Cannabis Co. – 100% Live Resin Disposable

 

 


StaffNovember 6, 2020
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3min8820

 Curaleaf Holdings, Inc. (CSE: CURA, OTCQX: CURLF) sells a pair of planned asset divestitures in Maryland for a combined $31.5 million in total proceeds as the company looks to supersize its Maryland operations. The company announced that it sold its interests in the smaller HMS cultivation and processor for $27.5 million to TerrAscend Corp. (CSE:TER, OTCQX: TRSSF). Instead, Curaleaf wants to buy Maryland Compassionate Care and Wellness, LLC, which operates a 55,000 square foot co-located cultivation and processing facility in Taneytown, MD, and a dispensary in Gaithersburg, MD under the Herbology brand. The company also closed its sale of a Cumberland, MD processor for $4.0 million. 

“The asset sales we announce today will allow us to optimize Curaleaf’s vertically integrated presence in Maryland within the regulation which limits operators to a single grow and single processor,” said Joseph Lusardi, Chief Executive Officer of Curaleaf. “Overall, the Maryland market continues to see impressive growth with over 115,000 certified cannabis patients. The actions we are taking aim to further strengthen Curaleaf’s position as a leading cannabis operator in Maryland as well as reaffirm our commitment to best serving our customers across the state.”

Transaction Details

Curaleaf sold its rights to the HMS Health LLC and HMS Processing LLC in Maryland to TerrAscend for a total consideration of $27.5 million. The company said that the HMS asset sale included the divestiture of operations in a 22,000 square foot co-located cultivation and processing facility in Frederick, MD. The deal includes $25 million in cash due at closing as well as a $2.5 million interest-bearing note due and payable to Curaleaf on April 30, 2022. The transaction is expected to close pending customary closing conditions, including regulatory approval by the Maryland Medical Cannabis Commission.

Curaleaf also sold Curaleaf Maryland, Inc., which holds a processing license in Cumberland, MD, for $4.0 million. This divestiture closed on November 1, 2020, and supports Curaleaf’s strategy for optimizing its vertically integrated presence in Maryland. Curaleaf currently operates in 23 states with 95 dispensaries, 23 cultivation sites, and over 30 processing sites, and employs over 3,000 team members across the United States.

 


Debra BorchardtAugust 18, 2020
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6min8390

Despite the challenges of COVID-19 in Massachusetts and Nevada, Curaleaf (OTC:CURLF) reported an impressive quarter and gave an even sunnier forecast. CEO Joe Lusardi said on the company’s earnings call that it took a $25 million hit to revenue in the quarter as a result of the pandemic. The tourist traffic in Nevada disappeared and the adult-use stores were closed in Massachusetts for weeks. Lusardi also pointed out that unlike Massachusetts’ quick recovery, Nevada’s recovery is painfully slow.

Earnings Recap

To recap, Curaleaf reported earnings after the close of the trading on Monday. The company delivered managed revenue of $121.4 million, which grew 120% year-over-year and 16% sequentially. Total revenue was $117.5 million, which grew 142% year-over-year and 22% sequentially. The net loss for the second quarter of 2020 was $2.0 million, compared to a net loss of $24.5 million in the second quarter of 2019. The company attributed the increase to a $19.2 million increase in the fair value of biological assets and a $1.1 million decrease in one-time charges.

“These benefits were partially offset by a $9.5 million increase in depreciation and amortization and a $0.3 million increase in share-based compensation, both of which are non-cash, a $5.3 million increase in income tax expense, and a $7.0 million increase in net interest expense.”

Guidance

Chief Financial Officer Mike Carlotti said on the call, “Based on current trends in our business and the ongoing recovery in Massachusetts and somewhat challenged recovery in Nevada due to COVID-19, pro forma Q3 revenue is expected to be approximately $205 million to $215 million. We expect to generate Q3 managed revenue of approximately $190 million to $200 million, which includes the partial Q3 benefit of the recently acquired Grassroots assets from the period of July 23 to September 30.”

“We expect to generate approximately $150 million to $160 million of managed revenues from core Curaleaf’s Select operations. We estimate Grassroots to contribute approximately $40 million in reported net revenue. Had Grassroots closed on July 1, it would have contributed approximately $55 million of revenue in the third quarter, net of assets now being held for sale in Maryland and Ohio to meet maximum license requirements. As Joe noted in his remarks during the quarter, we converted one of our main assets, Remedy to a for-profit, which was included in our Q2 financials.”

Political Landscape

The Curaleaf executives also had quite a few comments to make about the political landscape and the future of states like Connecticut and New Jersey.

Executive Chairman Boris Jordan said, “If you get a Biden administration, I suspect that most of the East Coast will be adult-use. And so I just don’t understand how they are going to deal with the fact that almost 80% of the population will have access to adult-use, about 85% will have access to medical. My view is that they will move reasonably quickly to some kind of either SAFE Act or something short of full legalization and maybe they will make some kind of special dispensation for medical.”

He added that New Jersey had not given any sort of timetable for adult-use, but surmised it could be quick as the state looks to relief in its budget as a result of the pandemic. He felt the New Jersey was no doubt watching the tax revenues enjoyed by Massachusetts. “If New Jersey goes adult-use, it is almost certain that Pennsylvania, New York and Connecticut will do it as well. And I think if we are talking again this time next year, on our second-quarter earnings call, I suspect that most of the East Coast will be.” (except perhaps Florida)

Banking

Carlotti said that Curaleaf accepts debit cards in eight states and will add three more by the fall. “What we have noticed is that typical transaction is about 20% higher than the average cash transaction and we have not seen any changes in visitation patterns as well. So, people are using the debit cards, they are spending more with those debit cards than they would otherwise if they just had cash.”

Lusardi said with regards to the SAFE Act, “A very major banking association, now including Visa, MasterCard is lobbying for the passage of this bill, because it makes sense its good public policy. So, we are hopeful that we will get a passage at some point and that will unlock credit card transactions in much bigger basket sizes that you would expect from like traditional retail.”


Video StaffAugust 17, 2020

1min26034

Curaleaf is rolling a new look to its dispensaries. Green Market Report visited the dispensary in Ware Massachusetts recently to see it in person. The old clinical looking medical dispensary has been replaced with a sleek, modern store for recreational consumers. This interview is an extended version with Curaleaf Massachusetts President Patrik Jonsson who spoke with GMR’s Debra Borchardt. The new design is discussed, along with bot the Select and Grassroots acquisitions


Video StaffAugust 17, 2020

1min13990

Curaleaf’s medical marijuana dispensaries used to have a decidedly clinical look about them. That has changed. Curaleaf’s adult-use stores have leveled up to a new modern stylish look. Green Market Report went on a road trip to Ware, Massachusetts to check out the new store look and talk to Curaleaf Massachusett’s President Patrik Jonsson. Thank you for watching the Green Market Report! Be sure to subscribe to our channel on YouTube.


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