The Key to Steady Share Gains in Curaleaf Holdings Inc (OTCMKTS:CURLF)

The Key to Steady Share Gains in Curaleaf Holdings Inc (OTCMKTS:CURLF)


Shares of Curaleaf Holdings Inc (OTCMKTS:CURLF) continue to outperform the majority of the OTC space and the cannabis patch, overall. The uptrend that has been in place since the lows in December has been remarkably consistent and sustained with very little in the way of volatility in the stock, which is quite unusual given the market segment we are talking about here. This sustained strength has been fostered by some strong catalysts in play for the company.

As a case in point, the company just announced it has signed a definitive agreement to acquire Eureka Investment Partners, LLC. According to the release, Based in Monterey County, California, Eureka operates a cultivation facility in the Salinas Valley and is developing three dispensaries across the state.

Curaleaf Holdings Inc (OTCMKTS:CURLF) promulgates itself as a company that operates as an integrated medical and wellness cannabis operator in the United States.

The Company is the parent of Curaleaf, Inc., a leading vertically integrated cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, Curaleaf, Inc. has a presence in 12 states.

Curaleaf, Inc. operates 30 dispensaries, 12 cultivation sites and 9 processing sites with a focus on highly populated, limited license states, including Florida, Massachusetts, New Jersey and New York. Curaleaf, Inc. leverages its extensive research and development capabilities to distribute cannabis products in multiple formats with the highest standard for safety, effectiveness, consistent quality and customer care. Curaleaf is committed to being the industry’s leading resource in education and advancement through research and advocacy.

Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles.

The company also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations. As of November 01, 2018, it operated a network of 29 dispensaries. The company was founded in 2010 and is headquartered in Wakefield, Massachusetts.

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As noted above, CURLF just announced it has signed a definitive agreement to acquire Eureka Investment Partners, LLC. Recent action has seen 30% piled on for shareholders of the stock during the trailing month.

Moreover, the listing has seen interest climb, with an increase in recent trading volume of 36% beyond what we have been seeing over the larger time frame. It pays to take note of this fact with a float in play that’s tiny — of 4.8M shares.

“The Eureka transaction represents a significant milestone for Curaleaf, enabling us to enter the highly attractive California market with a cultivation platform that we intend to use for state-wide product distribution,” said Joseph Lusardi, CEO of Curaleaf. “The planned launch of three dispensaries is a platform investment for Curaleaf’s retail expansion strategy to eventually cover the state, which is the largest market for cannabis consumption in the country.  With established vertically integrated operations, Curaleaf is ready to capitalize on the considerable market opportunity in California.”

Earning a current market cap value of $3.64B, CURLF has a significant war chest ($62.1M) of cash on the books, which stands against about $149.5M in total current liabilities. One should also note that debt has been growing over recent quarters. CURLF is pulling in trailing 12-month revenues of $27.9M. However, the company is seeing recent declines on the top-line on a sequential quarterly basis, with revenues falling at 0% as of its latest reporting period. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $CURLF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $CURLF, either long or short, and we have not been compensated for this article.

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