Today Curaleaf (CURA.T) announced it has managed to raise $520 million in a private placement and is now trading on the CSE. Curaleaf is already a very legitimate player in the US as they are the largest national retail dispensary brand in the U.S., as well as a premium mainstream cannabis brand available in multiple states and product formats.
Their footprint spans 12 U.S. states, comprising 28 dispensaries, 12 cultivation facilities and 9 processing sites. The Company, including subsidiaries and managed entities, operates in Arizona, Connecticut, Florida, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York and Oregon, with licensing pending in California and Pennsylvania.
Legitimizing US Cannabis, Fear Creates Opportunity
Raises of this magnitude further the theory that the US is where all the excitement is around investing in cannabis now. For consumers, Canada is a really exciting place to be, but in terms of finding undervalued Canadian companies to invest in this is becoming tougher and tougher.
One of our big beliefs today is that the US cannabis market is where the opportunity is. The reason the US is so undervalued is that the stigma and legal status of the product is baked into the share price.
For decades cannabis in the US has been seen as the devils crop with horror stories of people getting sentenced to decades in prison for mere possession. From a Salon article outlining some of the harshest sentences:
A Montana medical marijuana provider is facing 82 to 85 years behind bars, due to mandatory minimum laws linked to some of his charges. Convicted of crimes like manufacturing marijuana, intent to distribute and possession of a firearm during a drug trafficking offense, Christopher Williams appeared to be in the for the worst. But in a rare move this September, U.S. Attorney Michael Cotter offered to drop four of Williams’ charges and bring his sentencing down to “as little as 10 years,” so long as Williams waived his right to appeal.
Many states are moving towards legalization, however federally there is still questions as to what kind of timelines full legalization looks like.
We have written previously about US cannabis investing opportunities, check out this article to find out more: