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Curaleaf Footprint Rises To Top Covering About Two Dozen States

The Grassroots acquisition expanded Curaleaf’s footprint from 18 to 23 states

Massachusetts-based Curaleaf has become one of the largest multistate cannabis operators in the United States by adopting a broad-market approach – with scores of cultivation, processing and dispensary facilities now stretching across 23 states.

The diversified approach comes at a time when other multistate operators have retrenched and refocused operations, in part to conserve cash after investors grew hesitant to wager on cannabis and capital became tight.

While other MSOs have scrapped acquisitions in recent months, Curaleaf has completed two big deals since February totaling more than $1 billion in value: Oregon-based Cura Partners and, most recently, Illinois-based Grassroots Cannabis.

The Grassroots acquisition expanded Curaleaf’s footprint from 18 to 23 states, with 88 operating dispensaries or retail outlets.

The reasons for Curaleaf’s success so far can be attributed to a combination of factors, according to industry experts, media reports and company officials:

  • Curaleaf enjoys billionaire backing and raised $400 million in its initial public offering in October 2018, enabling the company to rapidly expand into new markets. The company’s two largest stockholders are Executive Chair Boris Jordan, who made his money as an investment banker in Russia, and Russian billionaire Andrei Blokh.
  • The company has executed its operations well. According to a June investor presentation (see map above), Curaleaf has been able to garner the top market position in six northeastern states, including its home base of Massachusetts, and significant market shares in other states. (The figures couldn’t be verified, and positions can change from month to month in markets where competition is tight.)
  • Curaleaf has been able to raise large amounts of capital to fuel expansion and acquisitions. In December, as capital markets were tightening, the company announced it had raised $275 million through a debt financing at a 13% annual interest rate. The financing, believed to be the U.S. marijuana industry’s largest at the time, was increased to $300 million in January

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