To have the biggest footprint, one must lace up the biggest shoe.
In the cannabis industry, multistate operator Curaleaf spent the past five years building itself a massive network with a 23-state foundation, and has no plans on slowing down as it continues to acquire licenses and increase capacity. Based out of Wakefield, Mass., the vertically integrated company’s operation includes 96 dispensaries, 23 cultivation sites and more than 30 processing sites.
This past July, Curaleaf closed on an approximately $700-million deal to acquire Grassroots Cannabis, making it the largest cannabis company in the world, based on its anticipated $1 billion annual revenue at the time.Curaleaf | curaleaf.comBased out of Wakefield, Mass., Curaleaf operates in 23 states with 96 dispensaries, 23 cultivation sites and more than 30 processing sites.
With that groundwork established, Curaleaf is now gearing for its next wave of growth by putting focus toward executing on that platform, said new CEO Joe Bayern, who started his role Jan. 1.
“One of the things that’s tied to my transition into the new role is going and looking at what we’re calling Curaleaf 2.0, which is really the next growth spurt for Curaleaf,” he said.
Curaleaf executives put a lot of attention on trying to understand what they want the company to look like in the next three to five years, what the industry might look like during the next three to five years, and then what capability and capacity are needed, to help establish company goals, Bayern said.
Knowing where the cannabis industry is headed provides a strategic roadmap to follow, he said.
“Listen, we think it’s an incredibly compelling opportunity in the marketplace,” Bayern said. “We think [the U.S.] marketplace could be a $100-billion market at some point. So, we want to be the leading industry player in cannabis, and we think certainly by 2025 there’s no reason why we can’t get the industry to about a $50-billion market size. And we want to take a dominant share of that market size.”
While Curaleaf built momentum heading into 2021, implications for an accelerated pro-cannabis landscape sparked when the U.S. Senate runoffs in Georgia went democratic on Jan. 6, swinging the majority of the upper chamber.
Prepared to take advantage of the potential of those election results, Curaleaf executives pulled the trigger to raise more than U.S. $200 million through an overnight marketed offering on the Canadian Securities Exchange (CSE). Oversubscribed, Curaleaf ended up raising C$316,882,500 of capital, or about U.S. $251 million, before deducting the underwriters’ fees and estimated offering expenses.
“I think everybody was pleasantly surprised, at least from the cannabis industry, that both of those seats went democratic,” Bayern said. “As early as the week before, we were hearing it was going to be split, so I think we were obviously prepared to do something in case of a swing to a democratic Senate. Even before the Georgia race, we had filed a shelf prospectus back in November