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Curaleaf: Another Example Of How Sector Expansion Lifts Cannabis Stock Prices

Published 29/06/2021, 10:09 pm
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Curaleaf Holdings (OTC:CURLF) (CSE:CURA) was one of the best performing cannabis stocks last week, gaining almost 10%, and underlining yet again that expansion is still the name of the game among marijuana growers.CURLF Daily

The bump in Curaleaf’s stock price came as a result of news that it opened its second dispensary in the state of New Jersey. The site is the company’s 107th in the United States.

The company also announced its second cultivation facility in that state is now fully operational, having just completed its first harvest. This triples Curaleaf’s growing capacity in New Jersey, which produces both medicinal and recreational weed.

The multi-state marijuana grower operates in 23 states across the US, has 22 cultivation facilities and just over 30 processing sites. Globally, Curaleaf International is the largest vertically integrated cannabis company in Europe, meaning it handles everything from growing, processing and marketing to retail customers.

Shares of Curaleaf opened last week at US$13.31. They closed yesterday at US$14.59, an increase of 9.6%, but still slightly below the high they hit on June 2, of US$15.14.

In the last year, Curaleaf stock has gained 147% and, given its production footprint across the US, is well positioned to take complete advantage of full federal legalization of cannabis in the country.

Canopy Growth Shares Up On News Of Completing Acquisition

Also reflecting the theme of expansion—this time through acquisition—Canopy Growth (NASDAQ:CGC) (TSX:WEED) shares last week saw a healthy acceleration, jumping just about 9%. The catalyst for this gain can be traced back to the confirmation the company completed its acquisition of Supreme Cannabis.CGC Daily

Shares of Canopy Growth opened last week at US$22.82. They closed yesterday at US$24.88, an increase of 9%. And, just like Curaleaf, still below the high hit earlier in the month of US$26.34.

In the last year, Canopy Growth shares have jumped 54.35%.

Acquiring Supreme Cannabis Company is part of Canopy’s plan to expand its market share by emphasizing its premium offerings. With Supreme Cannabis now firmly in the Canopy stable, the company is reportedly in command of just under 20% of the Canadian recreational market, which in April marked a new all-time monthly record.

According to Statistics Canada, the country's cannabis industry now operates at a C$3.71 billion (US$3 billion) annualized run rate.

UN Report: Cannabis Use On Rise Globally, Advertising Should Be Banned

The United Nations says cannabis use is on the rise globally.

That is just one of the findings in the UN’s World Drug Report 2021. It found that approximately 200 million people around the world now regularly consume the drug. That works out to be about 4% of the world’s population.

The report also found that marijuana use is up about 18% in the last decade, with North Americans leading the gain. According to the report, 14.5% of the population in North America consume some form of the weed.

The report also recommends that UN member states impose a ban on advertising and promoting cannabis, a similar move that it has taken towards tobacco.

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