Article

NO SATISFACTION WITH CANNABIS CONSOLIDATION

May 1, 2019

 

Next phase of buying with paper for inflated assets is on. The newest player is  Curaleaf Holdings, Inc. (CURLF) ($11.57) with an all-stock deal valued at  $950 million. Massachusetts-based cannabis company Curaleaf Holdings agreed to purchase a West Coast cannabis oil manufacturer, Cura Partners, which owns Select, the leading cannabis brand in California, Nevada, and Oregon.  Combining  Curaleaf’s East Coast footprint with a West Coast-focused Cura Partners will create the "most significant" U.S. cannabis company by market cap and combined 2018 sales -  market canalization $5 billion; revenue (ttm) 77.06 million.

Curaleaf CEO Joe Lusardi said, “The combination of Curaleaf and Select is a perfect fit. With our industry-leading capacity, expansive retail distribution network and Select’s impressive sales and marketing capabilities, we intend to meaningfully accelerate our top-line growth trajectory with the addition of the Select Oil product range.”
After an expected close to the Curaleaf-Cura Partners deal, the combined company will have a presence in 15 states. The merger should reduce costs, including a 25% reduction in processing expenses and a 50% drop in Select’s material prices.

A wave of consolidation in the cannabis space has made extreme market cap companies more excessive while further contracting their abilities to earning a real profit from operations.  Two weeks ago Canada’s Canopy Growth and U.S. multi-state operator Acreage Holdings announced a $3.4 billion. Trading paper for paper is the third oldest profession and the one that supplies the least satisfaction.

 

 

Please reload

Recent Posts

December 13, 2019

December 4, 2019

Please reload

Archive

Please reload

Tags

Please reload

Legal | Privacy

©2019 by first jersey cannabis corp.