Curaleaf: Legalization Not Needed

 

  • Senate Democrats finally introduce a cannabis bill with the potential for approval.
  • Curaleaf continues poised to benefit from recreational cannabis legalization in the tri-state area adding ~$10 billion in additional revenues to the market.
  • The stock remains cheap at just 8x conservative '23 adjusted EBITDA targets.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 

The Senate Democrats finally releasing a bill gives some slim hopes of Federal legislation on cannabis. Curaleaf Holdings (OTCPK:CURLF) stands to benefit from such legislation while still holding the wild card of significant growth from Northeast markets without Federal approval. My investment thesis remains ultra bullish on the stock after the inexplicable dip to $5 recently.

Read the full article on Seeking Alpha 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - Sept. 1

Very interesting deal in Germany that didn't get much attention, though recreational cannabis probably won't start until 2025.

-Curaleaf International Holdings Limited, the company's European holding company, has signed a definitive agreement to acquire a 55% stake in Four 20 Pharma GmbH, a fully EU-GMP & GDP licensed German producer and distributor of medical cannabis with its own product line.

-The unique partnership creates a strategic pathway for Curaleaf to acquire complete control of Four 20 Pharma within two years of the commencement of adult use in Germany and ensures alignment between Curaleaf and Four 20 Pharma's current management team to rapidly build a best-in-class German business and a strong platform for Germany's eventual adult use market. Germany currently represents the largest medical cannabis market in Europe, with a total addressable market of over €200M in 2022 and expected to grow to nearly €1bn by the end of 2024 via adult-use legalization, which is slated to begin in late 2023 or early 2024.

-Four 20 Pharma is among the largest cannabis operators in Germany, with a greater than 10% market share. From its inception, Four 20 Pharma has focused on bringing top quality flower to market.

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