Despite the slowdown in Pot stocks over the past few months, some companies have begun to prove themselves. Curaleaf Holdings (CURA Stock Report) (CURLF Stock Report) is certainly one of those cannabis stocks to watch. Recently, the company failed to beat analysts’ estimates for revenues in its Q2 2019 financial results. However, the financials were welcomed by cannabis investors.
Pot Stock News: Curaleaf Stock Soars 22% After Latest Announcements
The pot stock rose by as much as 22% this past week alone. In addition, the company’s 2020 projections could have been one of the reasons for the surge. Curaleaf projected that in its fiscal 2020 expectations, the company anticipates hitting $1 billion in revenue. If the company manages to hit that, it will become the first cannabis producer to do so.
The company has projected revenues in the range between $1 billion and $1.2 billion for fiscal 2020. In order to achieve those numbers, Curaleaf has been making a key acquisition in order to further grow. It has already acquired wholesale cannabis firm Cura Partners Inc in an all-stock deal worth $948.8 million. Furthermore, in July, it acquired multi-state cannabis operator GR Companies Inc. That was for a sum of $875 million. First, the deals need to be cleared by the anti-trust authorities in the United States. After this happens, both companies could bring more value to Curaleaf.
Breaking Down Curaleaf’s Q2 Financials
The total revenue’s for Curaleaf increased by 231%, year-over-year, while the company’s net loss also increased year-over-year. This was due to several acquisitions. Gross profit for cannabis sales increased from $4.6 million in Q2 2018 to $15.3 million in Q2 2019.
The acquisitions mentioned earlier included acquiring assets in Arizona, Claifornia, Nevada, Ohio, Chicago, and Massachusetts. The Arizona acquisition was to operate the state’s highest-grossing dispensaries, Absolute Healthcare Inc’s Emerald dispensary. The company also recently sold 6 properties for a total of $28.3 million with Freehold Properties. Curaleaf can still use these properties to produce its cannabis products as well.
Due to this large number of acquisitions, Curaleaf has become one the world’s largest cannabis company, expanding to 19 states. The rapid expansion in the US could prove fruitful given its recent wave of legalization.
Pot Stocks To Watch In 2019
The company’s revenues have grown at an impressive clip. On top of this, the Canadian marijuana market is still expected to grow rapidly. This growth is anticipated to happen despite the recent hiccups of the past few months. In a fresh development, Curaleaf announced that it is set to expand even further. The company plans to do this through the acquisition of a new retail outlet in Port Charlotte, Florida. The total number of dispensaries owned by the company now goes up to 49. Out of those, 26 are located in Florida, which is regarded as a particularly lucrative cannabis market.