Despite a lot of fears, Curaleaf (OTCPK:CURLF) has generally done what the Canadian cannabis giants couldn't do. The U.S. multi-state operator (MSO) has turned acquisitions into a market-leading position and a large EBITDA profit while the others have faltered. My bullish investment thesis remains intact as the MSO is poised to become the first cannabis company to top $200 million in quarterly sales with plenty of runway ahead.
Grassroots Key
Closing the Grassroots deal was important for many reasons. First, the company staked the business on the importance of grabbing the retail licenses in Illinois and Pennsylvania. Second, the management team spent a significant amount of time and effort over the last year attempting to close this deal with reputation risk ensuing by not closing the deal.
Ultimately, what matters is that Grassroots has access to key states such as Illinois that just approved recreational cannabis on January 1. Curaleaf estimates that sales jumped from $27 million in Q1 to $45 million in Q2 with significant growth forecasted in 2H. In total, Grassroots adds 57 dispensary licenses and 250,000 sq. feet of cultivation space.