On May 6, Curaleaf Holdings (CURA) (CURLF) announced that it signed a definitive agreement with Ohio Grown Therapies that grants it the option to acquire Ohio Grown Therapies’ licenses and cultivation and processing facilities for a total consideration of $20 million.
In 2018, the Ohio Department of Commerce awarded Ohio Grown Therapies preliminary cultivation and processing licenses. The company is building a 32,000-square-foot cultivation and processing facility in Johnstown, Ohio, under the guidance of Curaleaf. The acquisition, which is subjected to regulatory approvals, is expected to be complete in the second half of 2019.
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The announcement by Curaleaf appears to have led to a rise in its stock price. On the day, the company’s stock price rose to a high of 15.14 Canadian dollars before closing the day at 14.80 Canadian dollars, which represents a rise of 2.4% from its previous day’s closing price.
This year has been good for Curaleaf, and the company has returned a whopping 129.1% year-to-date as of May 6. During its fourth-quarter earnings call on March 20, Curaleaf’s management stated that CVS Health (CVS) would sell its CBD products in over 800 CVS stores. Also, Curaleaf completed the acquisition of Eureka and has signed a definitive agreement to acquire Acres Cannabis. All these initiatives have led to a rise in Curaleaf’s stock price.
Also, the Horizons Marijuana Life Sciences ETF (HMMJ), which tracks the performance of the public-listed cannabis businesses in North America, has returned 47.1% YTD, while the ETFMG Alternative Harvest ETF (MJ) has returned 42.4%.