An employee puts a vape cartridge in a bag at a Curaleaf shop in the Queens, New York, Oct. 18, 2018.
Jeenah Moon | Bloomberg | Getty Pictures
Cannabis business Curaleaf Holdings stated it really is acquiring Grassroots, providing Curaleaf a foothold on the burgeoning market place in the Midwest and sending its stock soaring 15% Wednesday.
The $875 million money-and-stock deal for Grassroots, formally identified as GR Providers, would bring Curaleaf’s merchandise to 19 states, up from 12, Curaleaf stated. The deal would also give the Wakefield, Massachusetts-primarily based Curaleaf access to Illinois and Michigan, two states that have legalized recreational pot.
Curaleaf expanded to the West Coast earlier this year when it acquired Cura Partners’ Pick brand. Curaleaf constructed its initial footprint along the East Coast in states such as New York, Maryland and Florida.
“This fundamentally fills out the footprint for us to sell our merchandise across all main markets in the United States,” Curaleaf Executive Chairman Boris Jordan stated in an interview with CNBC’s “Squawk Alley ” on Wednesday.
Curaleaf is expanding swiftly as the cannabis business booms. Eleven states have legalized recreational weed. Congress final year legalized CBD, a non-psychoactive compound derived from hemp, sparking a surge of interest from each shoppers and customer merchandise firms.
“We’re beginning to see most of the main states in the United States at least beginning to overview going recreational for adult use,” Jordan stated, adding that the subsequent frontier for Curaleaf is Europe.
Jordan stated the momentum goes beyond politics. Just a handful of years ago, he stated no a single would answer his calls about joining a cannabis business.
“Now, they are calling us and saying we would enjoy to come function for you,” he stated.