This article was originally published on TipRanks.com
Leading cannabis stock Curaleaf Holdings, Inc. (CURLF), which provides cannabis products, has entered into an agreement to acquire Natural Remedy Patient Center, LLC, an Arizona-based dispensary, for $13 million. The deal is likely to close in January 2022.
Following the news, shares of the company gained 3% to close at $8.86 in Thursday’s trading session.
Terms of the Deal
As per the terms of the deal, Curaleaf will pay $12 million in cash. CURLF will also allot its subordinate voting shares for a total share consideration of $1 million. The allotment is based on the market price during the period before closing the deal.
The transaction will increase the company’s retail footprint to 118 dispensaries across the country.
CEO of Curaleaf, Joseph Bayern, said “Arizona remains an important expansion market for Curaleaf, and we are excited to add our tenth retail dispensary in the state. We are also looking forward to relocating this dispensary to our new, highly trafficked flagship location in Scottsdale next year. Overall, our acquisition of Natural Remedy aligns with our strategy to continue expanding our leading U.S. presence both organically and through M&A.”
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Recently, MKM Partners analyst William Kirk reiterated a Buy rating on the stock with a price target of $15.61, which implies upside potential of 76.2% from current levels.
Consensus among analysts is a Strong Buy based on 9 Buys and 1 Hold. The average Curaleaf price target price target of $18.62 implies upside potential of 110.2% from current levels. Shares have declined 29% over the past year.
According to TipRanks’ Stock Investors tool, investors currently have a Very Negative stance on CURLF. Furthermore, 5.5% of portfolios tracked by TipRanks reduced their exposure to CURLF stock over the past 30 days.
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