Shares of Curaleaf Holdings Inc (OTCMKTS:CURLF) have been decidedly on the rebound in recent action, with the stock moving back above its critical 50-day simple moving average in recent action. To define the move, the company just responded to a letter from the U.S. Food and Drug Administration informing FDA that the Company has addressed the issues that were raised in the letter regarding its CBD product marketing.
According to the release, “Upon receiving the letter, Curaleaf Hemp, the Company’s hemp-based CBD product line, immediately began an extensive review of its website and social media platforms to remove all statements that FDA identified as non-compliant. This includes removing the Curaleaf Hemp blog, and the third-party links in it, and removing any statements and social media posts to which FDA had taken exception. Additionally, Curaleaf Hemp advised FDA that a number of the products mentioned in the FDA letter had previously been discontinued. Curaleaf Hemp will continue to work diligently to ensure that information it provides to consumers on its website and social media platforms are fully compliant with FDA requirements.“
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 responded to a letter from the U.S. Food and Drug Administration informing FDA that the Company has addressed the issues that were raised in the letter regarding its CBD product marketing.
Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. What’s more, the company has witnessed a pop in interest, as transaction volume levels have recently pushed about 12% above the average volume levels in play in this stock over the longer term.
“Our industry needs, wants and appreciates the work the FDA is doing to ensure there is regulation and compliance in the CBD marketplace,” said Joseph Lusardi, CEO of Curaleaf. “We care deeply about our customers and making a difference in our industry. Curaleaf is committed to being an ethical and responsible company and working with the FDA to be a leader in our industry, setting the standards and guidelines to best service our customers and the communities we serve.”
At this time, carrying a capital value in the market of $2.8B, CURLF has a significant war chest ($230.6M) of cash on the books, which must be weighed relative to about $34.9M in total current liabilities. CURLF is pulling in trailing 12-month revenues of $117M. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 11%. We will update the story again as soon as developments 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.