Curaleaf Aims To Be First In Cannabis Sector To Top US$1B Revenue In 2020 – Investing.com

Shares of Curaleaf Holdings Inc (OTC:), (CSE:), ended last week up 12.5% after the Massachusetts-based cannabis company released its report last Tuesday. Although earnings did not meet analysts’ expectations, the company provided ambitious guidance for the 2020 fiscal year, setting the stage for it to become the first marijuana grower to post revenue figures that could top the US$1-billion (C$1.3 billion) mark.

The projection puts the marijuana grower on a sharp upward trajectory that will firmly establish it among the largest tier-one cannabis companies in North America, especially now that Canopy Growth (NYSE:), (TSX:)—which had previously projected revenues to hit the $1-billion plateau—is scaling back its outlook to a more modest level.

Curaleaf price chart

Curaleaf, which operates in 12 states, provided guidance that it expects to generate between US$1 billion and US$1.2 billion in revenue in the next fiscal year. The company did add, however, that these targets are based on finalizing two major acquisitions—the purchase of Select and .

Major Acquisitions

In May, Curaleaf announced the takeover of the Select brand from Cura Partners Inc. in an all-stock transaction valued at US$ 948.8 million (C$1.27 billon). Select is regarded as the best known wholesale cannabis brand in the U.S. The deal includes Select’s manufacturing, processing, distribution, marketing and retail operations that contains a network of 900 retail outlets in California, Arizona, Oregon and Nevada.

Then, later in July, Curaleaf announced the US$875 million (C$1.68 billion) takeover of GR Companies Inc., commonly referred to as Grassroots, the largest private multi-state cannabis company in the United States. When completed, the cash and stock deal would make Curaleaf the largest marijuana company in the U.S. and the largest in the world by revenue. The deal would also expand Curaleaf’s base of operations to 19 states.

But both these

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