Massachusetts-based Curaleaf, a vertically integrated cannabis company, agreed to acquire Portland, Oregon-based Cura Partners in an all-stock deal worth 1.27 billion Canadian dollars ($949 million).
Curaleaf will issue 95.6 million subordinated voting shares, giving Cura a roughly 16% stake in the company.
The deal is the latest in a string of recent mega-deals in the cannabis space, including Harvest Health & Recreation’s $850 million acquisition of Verano Holdings and Cresco’s agreement to acquire Canadian distributor Origin House for CA$1.1 billion.
As you might expect, several marijuana stocks with operations in New Jersey felt the sting of the delayed vote on legalizing recreational pot. Most of these stocks with New Jersey connections have flown under the radar for many investors, though.
Shares of Curaleaf Holdings (NASDAQOTH:CURLF) sank 5% on Monday. Curaleaf operates only one dispensary in New Jersey, however. Some of the stock's pullback could have been related to profit-taking after Curaleaf soared last week on news that giant pharmacy retailer CVS Health was selling its hemp-based cannabidiol (CBD) products.
If everything goes off without a hitch, it could be a boon for marijuana businesses and the state's tax coffers. The proposed bill includes a $42-per-ounce tax on marijuana, and it allows towns to collect a 3% tax from cannabis retailers, a 2% tax from cultivators, and a 1% tax from wholesalers. GreenWave's Karnes estimates New Jersey's medical marijuana sales were just $66 million in 2018, but legalization of recreational use could grow regulated marijuana sales to $750 million next year and to over $930 million in 2022.
New York State Governor Andrew Cuomo announced his plan to legalize adult use cannabis in 100 days. The governor did not provide a lot of details but suggested it would continue to be a restrictive program.
Of course, New Jersey also said it would legalize adult use cannabis but then found it has taken much longer to make adjustments to the rules and regulations of a conservative medical cannabis program. Cuomo did note that consumers would need to be over the age of 21 and he was very supportive of towns cities having the ability to opt out of allowing cannabis businesses.
These multistate operators (MSOs) tend to consider:
Back on Nov. 26, both the state's Senate and Assembly overwhelmingly voted in favor of three bills that would legalize recreational weed within the state, expand the medical pot program, and speed up criminal expungements of low-level cannabis offenses. Although this vote didn't legalize recreational marijuana, it does signal genuine support among state legislators for such a move.
Curaleaf Holdings, Inc. (CSE: CURA) / OTCBB: CURLF) (“Curaleaf” or the “Company”), a leading vertically integrated cannabis operator, today opened its fourth dispensary in New York State. Located at 255 Glen Cove Road in Carle Place, Long Island, the new location will provide medical cannabis patients in Nassau and Suffolk counties easier and more convenient access to necessary medicine. This new location will be the company’s 36th dispensary.
The end of 2018 set the stage for more consolidation. Larger, more well-financed players were able to acquire smaller companies as the land grab frenzy heats up. Key end of year consolidations included MedMen's (MMNFF) acquisition of Pharmacann and the combination of iAnthus (ITHUF) and MPX Bioceuticals (MPXEF) . The latest announcement between Green Growth Brands and Aphria (APHA) has generated a heated discussion as to whether the proposed hostile bid is serious.
4. New Jersey will be next state to legalize recreational marijuana.
As we barrel toward 2019, more legalizations in the U.S. could be on the docket, with the Garden State, New Jersey, looking to have a very good chance to legalize adult-use cannabis.
Back on Nov. 26, both the state's Senate and Assembly overwhelmingly voted in favor of three bills that would legalize recreational weed within the state, expand the medical pot program, and speed up criminal expungements of low-level cannabis offenses. Although this vote didn't legalize recreational marijuana, it does signal genuine support among state legislators for such a move.