Curaleaf Holdings Inc., the most valuable U.S. marijuana company, is making a big bet on cannabis oil.
The Massachusetts-based company is buying the regulated cannabis business of Cura Partners Inc., a maker of oil for vape pens, in a stock deal valued at about $1.27 billion (US$950 million). That makes it the largest acquisition so far between U.S. cannabis companies. Cura, based in Portland, Oregon, sells its Select brand marijuana products in more than 900 dispensaries, including in California, which is home to the world’s largest legal weed market. It had revenue of about US$117 million last year.
Acquiring Select gives Curaleaf a popular West Coast brand it can sell at its dispensaries around the U.S., according Boris Jordan, the company’s chairman.
Curaleaf shares jumped as much as 11 per cent in Toronto after the news. The stock has more than doubled so far in 2019.
Most recently, Acreage Holdings Inc., another of the most valuable U.S. weed companies, agreed to be acquired by Canada’s Canopy Growth Corp. The US$3.4 billion merger, which would give Canopy access to the lucrative U.S. weed market, is contingent on the federal government changing its marijuana rules.
Published: May 01, 2019
Founder & Interim Editor of L.A. Cannabis News