Curaleaf Holdings (CURA) (CURLF) has started 2019 on a stronger note. As of April 9, the company’s stock price has increased 83.0% since the beginning of the year. In comparison, the Horizons Marijuana Life Sciences ETF (HMMJ), which tracks the performance of the public-listed cannabis business in North American, has returned 45.9%, while the ETFMG Alternative Harvest ETF (MJ) has returned 41.4%.
Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Drivers of Curaleaf’s stock price
On March 20, during its fourth-quarter earnings call, Curaleaf’s management announced that CVS Health (CVS) would sell its CBD products in over 800 CVS stores. CVS, which operates more than 10,000 drugstores, stated that it will offer CBD creams, sprays, and lotions. CVS won’t be selling any supplements or food additives that contain CBD.
Curaleaf completed the acquisition of Eureka. The company also signed an agreement to acquire Acres Cannabis for $70 million. Eureka is a California-based company. Eureka operates a cultivation facility and is developing three dispensaries. Acres Cannabis operates 269,000 square feet of cultivation facilities and a cannabis dispensary in Las Vegas, Nevada. The acquisitions are expected to strengthen Curaleaf’s posting in California and Nevada. Along with these announcements, the stronger broader equity market led to a rise in Curaleaf’s stock price.