Yesterday, Curaleaf Holdings (CURLF) (CURA) opened its first recreational or adult-use dispensary in Massachusetts at Oxford. The store is alongside its medical dispensary at 425 Main Street in Oxford. Curaleaf opened its medical dispensary in April 2018.
Also, the company announced that it would serve the customers only through an appointment in the first 30 days. However, the company added that the customers could get the appointment on-site itself provided the schedule permits.
Legal cannabis in Massachusetts
On September 13, 2019, Curaleaf got a license to open a recreational cannabis store from the Massachusetts Cannabis Control Commission. Also, the commission allowed Curaleaf two licenses for recreational cannabis stores at Ware and Provincetown. At present, Curaleaf has a medical cultivation and manufacturing facility at Webster. The commission allowed two more licenses for cultivation and manufacturing to run alongside the Webster facility.
Massachusetts legalized medical cannabis in 2012. The state allowed recreational marijuana in July 2017. This was after a ballot vote in November 2016, which was for legal adult-use cannabis. Currently, people can’t consume cannabis in public places. However, the Cannabis Control Commission is working on making the regulations for social consumption and delivery services.
Curaleaf’s stock performance
Yesterday, Curaleaf’s announcement of the opening of the new store raised the stock by 4.0%. However, weakness in the cannabis sector pulled the stock down to close the day down 0.8%.
This year, Curaleaf’s stock shrunk by 1.8% as of November 4. The optimistic management guidance for fiscal 2020 and buying Select and Grassroots Cannabis led the company’s stock price to rise. However, the weakness in the cannabis sector and the deal amendment with Cura Partners dragged the stock down. On October 30, Curaleaf amended its deal with Cura Partners, the owner of the Select brand. For analysts’ opinions on Curaleaf, please read, Here’s What GMP Says about Curaleaf.
The cannabis sector takes a hit
Meanwhile, MedMen Enterprises (MMEN) (MMNFF) and Charlotte’s Web Holdings (CWEB) (CWBHF) fell 59.5% and 0.3%, respectively, YTD (year-to-date). Last month, MedMen reported lower-than-expected fourth-quarter earnings. Weak fourth-quarter earnings, allegations of irregular finances, and the canceled deal with PharmaCann caused the stock to fall.
On August 14, Charlotte’s Web reported lower-than-expected second-quarter earnings. Additionally, this led the company’s stock price to fall. Charlotte’s Web will report its third-quarter earnings next month. For analysts’ expectations, read Charlotte’s Web Holdings: What to Expect from Q3 Results.
Also, The Green Organic Dutchman Holdings (TGOD) (TGODF) fell 55.7%. Last month, TGOD announced a new strategic plan. The plan focuses on profit while lowering its financing requirements. However, its strategy hasn’t gone well with investors. This led to a fall in the company’s stock price.
For more cannabis-related news and updates, follow 420 Investor Daily.