The Biggest U.S. Marijuana Acquisition Just Happened for Nearly $1 Billion


 
 
02:14 05/04/2019











Portland-based marijuana company Cura Cannabis has just sold for almost a staggering $1 billion this week to Curaleaf Holdings [OTCMKTS:CURLF]. Shares of Curaleaf, which trades on the Canadian market, jumped 12 percent on the news.



The company was sold in an all-stock transaction with the price marking the biggest deal ever among American companies in the legal marijuana space.



Cura Cannabis, which says it has 500 employees and had revenue of $117 million in 2018, sells its cannabis oils on the wholesale and retail market under the Select brand and operates in California, Arizona and Nevada.



Cura Cannabis and Massachusetts-based Curaleaf Holdings, value the transaction at $949 million based on Curaleaf’s closing stock price on Tuesday.



“The transformational acquisition of Cura and the Select brand is another step in our journey to create the most accessible cannabis brands in the U.S.,” wrote Joseph Lusardi, Curaleaf’s chief executive.



The newly combined company will operate in 15 states where marijuana is legal and Cura Cannabis CEO Cameron Forni, will become Curaleaf’s president.



Forni stated, “The leading companies in the industry on the West Coast and the East Coast are now joining forces to progress the legalization and mainstream acceptance of cannabis across the country.”



“I could not be more excited about this transaction with Curaleaf and what it means for the Select brand and for our industry. The leading companies in the industry on the West Coast and the East Coast are now joining forces to progress the legalization and mainstream acceptance of cannabis across the country,” Forni also said.



He added, “Cura and the Select brand would not have the exceptional platform for growth that we have today without the incredible team that has built our foundation – from our production staff, to our sales and marketing teams, and our executive leadership. In partnership with Curaleaf, we will continue to uphold our standards across people, product and business innovation.”



Curaleaf said in a press release, 'The transformational acquisition of Cura and the Select brand is another step in our journey to create the most accessible cannabis brands in the U.S. 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 topline growth trajectory with the addition of the Select Oil product range. In addition, we intend to create significant operational synergies from the integration of Select’s wholesale business with our vertically-integrated cultivating, processing and retail platform. We look forward to welcoming the talented Select team who will bring superior brand marketing expertise and a culture of innovation in technology and product development.'








This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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