Pot Stock Curaleaf Gaining Momentum
Curaleaf Holdings (CNSX: CURA), a vertically integrated medical cannabis operator in the US, continues to make headlines as the pot stock gains momentum.
This pot stock surged nearly 11% amid news that it has recently acquired BlueKudu, a premium edible cannabis producer from Colorado. The deal also entailed Curaleaf would purchase the manufacturer’s Denver processing facility spread across 8,400-square-foot. BlueKudu serves both the medical and recreational marijuana market and is also renowned for crafting artisanal cannabis edibles that are both gluten-free and vegan.
According to Curaleaf, this acquisition would help it to establish solid footprints on the West Coast. The pot stock is all set to benefit from BlueKudu’s robust manufacturing facilities and dispensary network to expand the distribution of its SELECT brand of cannabis offerings. This deal provides Curaleaf a foothold in Colorado, which is among the largest cannabis markets in the US.
Curaleaf continues to ride high on strong financials
Curaleaf derives its strength from its robust top-line and bottom-line growth. Its revenue for Q1 surged 174% YoY (year-to-year) to $96.5 million, while it’s adjusted EBITDA soared 45% to $20.0 million quarter-over-quarter (QoQ).
Notably, the cannabis company has been posting positive EBITDA for the past four quarters despite pervasive weakness in the overall cannabis sector. The marijuana stock’s cash balance at the end of the first quarter also quadrupled to $176.36 million from $42.3 million. This indicates that the company is comfortably positioned to face volatile market conditions – such as the ongoing global pandemic.
Acquisition Strategy is the key to Curaleaf’s Success
One of the strongest foundations of Curaleaf’s growth is its acquisition strategy. Its acquisition of SELECT in February 2020, one of the most popular US brands specializing in wholesale cannabis, was a strategic one. The brand also has an expansive network of 900 retailers across the country and is likely to widen the reach of this pot stock.
In April, the marijuana producer acquired three dispensaries from Arrow Alternative Care in key Connecticut population centers. Curaleaf is one of the four licensed cannabis growers in the state, and the hemp stock is set to strengthen its foothold in the market by taking three dispensaries under its wings.
Curaleaf and Grassroots
On Monday, the news of another acquisition stoked investor optimism and Curaleaf stock closed over 10% higher. This time the cannabis company announced that it now acquired from Grassroots, the exclusive rights to the license of All Rebels Rockers dispensary in Arizona. Early next week, Curaleaf also intends to formally complete the acquisition of Grassroots. Curaleaf is upbeat about its Grassroots acquisition as this will further strengthen its presence in Arizona, one of the biggest cannabis markets in the US.
We Expect Curaleaf’s Dream Run to Continue
Consistent financial performance and organic growth are two of the strong cases for investing in Curaleaf pot stock. This over-the-counter pot stock is likely to hold on its positive momentum and come as a fairly attractive pick for the investors. We have our eyes set on how well the various acquisitions made in 2020 contribute to the growth of the cannabis company. Curaleaf is set to release its second-quarter numbers in August and investors should particularly watch out for the revenue growth and adjusted EBITDA for the quarter. We certainly believe Curaleaf is among the best pot stocks to buy in 2020. Add this one to your watchlist and witness the continued momentum.
Pot Stock Curaleaf Gaining Momentum
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