Curaleaf Archives - Green Market Report

Debra BorchardtNovember 8, 2021


Curaleaf Holdings, Inc. (OTCQX: CURLF) is buying western state operator Tryke Companies known for its Reef Dispensaries in a deal valued at approximately $286 million. The acquisition is expected to close in the second half of 2021. Curaleaf said it will be immediately accretive. Tryke is expected to deliver nearly $110 million in full year 2021 revenue.

Tryke was founded in Arizona in 2014, but is known for its efforts to steer the Nevada’s legal cannabis market from its inception in 201. The company is also known to lead the industry in Utah where it has worked since 2019 to help establish the state’s medical cannabis program. Tryke currently owns and operates six heavily trafficked dispensaries under the Reef brand, with two retail stores in Arizona and four in Nevada, including the Phoenix metropolitan area, Las Vegas strip and North Las Vegas. The company’s products are sold in over 50 additional locations across its footprint.

“This strategically and financially compelling transaction will expand our US presence by bringing additional premium products to our consumers and retailers in NevadaArizona and Utah, all while yielding meaningful benefits for all of our stakeholders,” said Boris Jordan, Founder and Executive Chairman of Curaleaf. “We expect the acquisition to be immediately accretive to our EBITDA margins and free cash flow generation upon closing.”

Curaleaf said it will assume ownership of Tryke’s extensive portfolio of processing licenses and expects to significantly expand its cultivation capacity from 30,000 square feet to over 80,000 square feet over the next three years.

“This is a tremendous opportunity for Tryke and, as a combined entity, we will continue to deliver significant value for our consumers and retailers in ArizonaNevada and Utah,” said Adam Ryan, Chief Executive Officer of Tryke Companies. “As a part of Curaleaf’s growing network of dispensaries, Tryke is excited to bring its full suite of multi-price point products to an expanded base of consumers across the country.”

Curaleaf will announce its financial results for the third quarter of 2021 after the market close on Monday.

Debra BorchardtOctober 8, 2021


It was a massive “Oooops we Goofed” from Curaleaf (OTC: CURLF). the company accidentally sold CBD products that had THC in them. The third lawsuit against Curaleaf has now been filed by an elderly man named Michael Lopez. His case now joins Jason Crawforth and Kathleen Menard who have both filed lawsuits in September saying they also purchased and consumed “Select CBD Drops” in Oregon that affected them. Curaleaf said in a statement at the time, “After our preliminary investigation, we believe this mistake occurred due to unintentional human error.”

Lopez’s lawsuit claims that he was “taken by ambulance to the emergency room out of concerns he was having a stroke, and he experienced harm including unnecessary surgery, fear
of death, unwanted confusion, stress, anxiety, psychosis, discomfort, and distress lasting several hours, and interference with life activities.” Also included in the lawsuit is Lopez’s granddaughter Amy Cantu. She says she experienced harm including unwanted nausea, dizziness, tunnel vision, weakness, confusion, discomfort, and distress lasting several hours. His daughter Susan Lopez-Henri also claimed that she took the drops and experienced harm including feelings of being intoxicated despite being in recovery, possibly requiring her to start a new clean date, unwanted confusion, stress, anxiety, discomfort, and interference with her sobriety and life activities.

Oregon Recall

Oregon regulators have said that a Curaleaf manufacturing facility made a mistake that resulted in hundreds of mislabeled bottles, and that at least a dozen other consumers also took the THC-tainted drops. In September, The Oregon Liquor and Cannabis Commission has issued a mandatory recall for a product labeled as a hemp tincture that can get consumers “high” because the product contains undisclosed levels of THC. Consumers using this mislabeled product may become unexpectedly impaired. The recall is for an item labeled as a hemp CBD tincture produced by Cura CS, LLC, and sold under its Select brand. The specific batch of this product Select CBD Drops “Broad Spectrum” Unflavored 1000 MG CBD was only available for purchase through OLCC licensed retailers. ThOLCC then expanded the recall to include Select Tincture 30mL THC Drops – 1000mg Unflavored which is only available for sale at OLCC licensed retailers. The OLCC has conducted preliminary tests of the Select Tincture 30mL THC Drops – 1000mg Unflavored and found that it does NOT contain any detectable THC.
The expanded recall affects Select Tincture 30mL THC Drops – 1000mg Unflavored that was produced on May 14, 2021. The OLCC estimates about 630 units were sold beginning June 29, 2021 and about 130 units are still on the shelves of OLCC retailers.

“We have worked with the [Oregon Liquor and Cannabis Commission] to recall the two batches in question, and the limited number of remaining units have been removed from sale,” Curaleaf said to Law360. “We sincerely apologize to all customers impacted by this mistake, and we will actively return responses from anyone who reaches out.”

Other Cases

Lopez’s case joins Crawfords who also went to the emergency room after taking the drops. He claimed he needed immediate medical treatment in the Emergency Room, and was unable to drive a car. He also said he had unwanted anxiety, acute psychosis, discomfort, and distress. Menard didn’t say she needed medical attention but did say she had experienced “unwanted hallucinations, confusion, stress, anxiety, psychosis, discomfort, and distress lasting over 24 hours.”



Debra BorchardtOctober 5, 2021


New York’s Cannabis Control Board is moving quickly to make up for the lost time under the previous administration. In the group’s first meeting since incoming Gov. Hochul stepped in and nominated people for the board, they approved raw cannabis flower as a medical product effective immediately.

Boris Jordan, the founder and chairman of Curaleaf (OTC: CURLF) said on Twitter:

Thank you, NY Gov. Hochul & the Office of Cannabis Management for allowing the sale of whole flower. This decision impacts 151k+ medical patients in NY who will now have access to quality & safe whole flower. Action (not talk) from our new Gov!

In addition to approving flower, the Board also loosened other restrictions.

  • Doctors can approve medical patients
  • 30 day supply increases to 60 day supply
  • $50 registration fee for patients is waived
  • Streamlining dispensation

Currently, New York cannabis law states that adults 21 and older can possess up to three ounces of cannabis or 24 grams of concentrates in New York. The irony is that regular citizens could legally smoke cannabis flower in public, while medical patients weren’t allowed such a form factor.

The meeting was a quick one and lasted roughly 30 minutes. The board members are Tremaine Wright (Cannabis Control Board Chair) , Jessica Garcia, Rueben McDaniel III, Jen Metzger, Adam Perry and Chris Alexander (Executive Director). The meeting also named Jason Starr as the Chief Equity Officer. He served as assistant counsel to former New York Gov. Andrew Cuomo (D) and also worked at the New York Civil Liberties Union.

Patrik Jonsson, Regional President of the Northeast at Curaleaf said, “The expansion of New York’s medical program allowing the sale of whole flower is a very big deal for the thousands of patients affected who now have access to the most cost effective and natural form of the plant. On behalf of Curaleaf and our patient community, I want to thank legislators and the Office of Cannabis Management for their leadership on this issue. This continued evolution of the medical program, which includes expanded qualifying conditions and the removal of application fees, will empower more patients to make choices that work best for their needs. These changes will give New Yorkers access to whole flower that has undergone standardized procedures and testing protocols, ensuring quality and safety. Curaleaf looks forward to expanding our product offerings to best serve our valued patients.” Curaleaf said it could have products on the shelf in November after state testing.

Stocks See Lift

Several of the cannabis companies with large exposure to New York saw stock prices immediately jump on the news. Curaleaf Stock rose as did Green Thumb Industries (GTBIF).

Debra BorchardtAugust 9, 2021


Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) reported its financial and operating results for the second quarter ended June 30, 2021. Curaleaf revenue reached $312 million, increasing 20% sequentially and 166% YoY. The company’s net losses were trimmed from $17.2 million in the first quarter to just $7.2 million in the second quarter.

“July saw the introduction of the most comprehensive cannabis reform ever proposed at the Federal level,” said Boris Jordan, Executive Chairman. “Combined with U.S. state-level liberalization and the significant investments we are making in cultivation, production and distribution, Curaleaf is creating a strong foundation for future growth. Nearer-term this includes the expansion of New YorkNew Jersey and Connecticut from medical to adult-use markets representing a potential new $8 billion annual addressable market opportunity. Longer-term, our acquisition of EMMAC and establishment of Curaleaf International this quarter marks our entry into Greater Europe, with a population of 750 million representing a potential market size twice that of the United States.”

Curaleaf’s adjusted EBITDA was $84 million for the second quarter of 2021 versus last year’s $28 million for the second quarter. The company said the year-over-year increase was primarily driven by strong revenue growth and increased operating leverage. Adjusted EBITDA margin expanded 320 basis points year-over-year to reach 27.0%. Excluding Curaleaf International, the margin expanded 400 basis points sequentially and 423 basis points year-over-year to 28.1%. As of June 30, 2021, Curaleaf had $334 million of cash and $338 million of outstanding debt net of unamortized debt discounts.

It’s worth noting that the lowered net losses were impacted by higher stock-based compensation and one-time charges related to the acquisition of EMMAC (now Curaleaf International) as well as earnings dilution from the consolidation of EMMAC, which contributed to a net loss of approximately $8 million. For the six months ending in June, the net losses are $26 million versus 2020’s net losses of $17.2 million.

CEO Joe Bayern added, “Curaleaf continues to make excellent progress in terms of executing our U.S. strategy to achieve unrivaled scale and reach, and our record second-quarter results reflect this. Our leading positions in cultivation and distribution are driving some of the strongest revenue growth rates in the sector, while our scale and focus on cost efficiency are delivering Adjusted EBITDA margin expansion as promised. Looking ahead, our strategic investments in innovation and technology will deliver processing advantages and consumer-focused product differentiation to fuel our growth into 2022 and the years beyond.”

Following the end of the quarter, Curaleaf opened a medical dispensary in Wells, Maine, bringing total retail dispensaries to 108 as of today. The company also launched B. Noble pre-roll brand partnership in Maryland and Massachusetts.

Debra BorchardtJuly 27, 2021


In Morningstar’s report from June titled “Buy American Cannabis Stocks Regardless of Federal Legalization”, the research firm believes cannabis investors should buy American and its top picks are Curaleaf (OTC: CURLF) and Green Thumb Industries (OTC: GTBIF). The analyst Kristoffer Inton acknowledges that the market seems to reward Canadian companies since the country is fully legal. However, he believes that American cannabis companies stand to experience revenue growth and rapid margin expansion even if federal legalization doesn’t happen. 

“Curaleaf and Green Thumb have strong revenue tailwinds outside of federal policy as more states legalize, new dispensaries open, and black market and new customers enter the legal market,” Inton wrote. “Unlike their Canadian peers, American MSOs have turned top-line growth into expanding profitability. Indeed, when it comes to cannabis, investors should buy American.”

Canadian Stocks Appear Blessed

Morningstar noted that Canadian stocks have moved higher than American colleagues. “From the beginning of 2021 to early February, Aurora, Canopy, Cronos, and Tilray shares rose by 33% to 161% compared with Curaleaf and Green Thumb rising just 15% and 28%, respectively. In our view, this was due to the market’s increased expectations for legalization and not operational performance, as the Canadian producers generally struggled during pandemic restrictions while American producers continued to rapidly expand profitability.”  Inton said that except for Canopy Growth and Cronos, Canadian producers’ U.S. operations are largely limited to hemp-derived CBD and alcohol. So federal legalization would carry no benefit to these companies.  

Beyond stock valuations, Inton also highlighted the contrast in profitability between U.S. and Canadian producers. “From 2017 to 2020, both groups’ revenue rose roughly 120% to 220% per year on average. However, while Americans Curaleaf and Green Thumb saw adjusted EBITDA margins expand to 20% to 30%, of the Canadians, only premerger Aphria had reached and premerger Tilray neared positive adjusted EBITDA. Aurora Cannabis, Canopy Growth, and Cronos continued to generate massive profit losses, albeit narrower than in prior years.”

Curaleaf, Green Thumb

Morningstar wrote that Curaleaf and Green Thumb already operate in the medical markets of New Jersey and New York and new adult-use legislation in these states sets them up for a future sales surge. Curaleaf has a buy rating and a $21 target price. The stock was lately selling at $12.47. The revenue for 2021 is forecast to reach $1.1 billion. Green Thumb also has a buy rating and a target price of $46. The stock was recently selling at $29. The revenue for 2021 is forecast to hit $877 million. 

In Closing

Optimism for federal legalization has risen rapidly after Biden won the presidential election. Sens. Cory Booker (New Jersey), Chuck Schumer (New York), and Ron Wyden (Oregon) have introduced new legislation to fully legalize cannabis, but it doesn’t look like the votes are in place to pass it. The chance of banking legislation is more likely and even that is tenuous. “In our discussions with banking regulatory officers, they think that a safe harbor statement might not be enough. They believe that a truly effective banking bill would need to come with a detailed and robust regulatory framework to minimize the uncertainty and risk for banks. Assuming the bill goes far enough, the benefits for U.S. MSOs could be meaningful.”


Debra BorchardtJuly 12, 2021


Curaleaf Holdings, Inc. (OTCQX: CURLF) named Ranjan Kalia as the company’s new Chief Financial Officer replacing Michael Carlotti, who is stepping down from the role of Chief Financial Officer for medical reasons. Since 2008, Kalia has served as Executive Vice President and Chief Financial Officer of digital company Virtusa Corp. Curaleaf said in a statement that Kalia brings extensive experience and deep knowledge across corporate tax regulations, U.S. SEC regulations, and Sarbanes Oxley compliance requirements to the role. He starts his new role on July 19.

“On behalf of the Board of Directors and the executive leadership team I want to personally thank Mike for his tremendous commitment and contributions to Curaleaf,” said Boris Jordan, Executive Chairman. “During Mike’s tenure as Chief Financial Officer, he delivered exceptional financial performance management while ensuring the Company maintained its commitment to a strong balance sheet to help drive our business and meet our goals. Mike played an important role in setting the foundation for our future success; moreover, he’s an exceptional professional and friend. We wish him all the best for a prompt and full recovery.”

Kalia said, “I am truly honored to be joining the Curaleaf team at this exciting time in the company’s evolution. As Curaleaf has established itself as the global pure play cannabis leader, the company remains in the very early innings of its long-term potential development in this dynamic and fast-growing industry. I look forward to partnering with the entire Curaleaf team to continue executing on its track record for financial performance, strong balance sheet and robust engagement with the financial community.”

Before joining Virtusa, Kalia spent 8 years with EMC Corporation. During his tenure, he served in various roles including Vice President of Finance and Chief Financial Officer – Asia-Pacific Region. Prior to that, he also held senior financial, controller, and audit positions at GE Capital, Pepsi Cola Co., and Pricewaterhouse Coopers (PwC). He also served as a Board of Director and Audit Committee Member for Polaris Consulting & Services from 2016 to 2018. Kalia holds a Bachelor of Commerce from New Delhi University in India and a Master of Business Administration degree in Finance from Nichols College in Massachusetts.

Debra BorchardtMay 17, 2021



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 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


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


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


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.”

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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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