Curaleaf Holdings Inc (TSE: CURA) (OTCMKTS: CURLF) has obtained a hefty new credit line to help balance its budget and streamline its operations. The cultivator’s stock took a significant hit the day it announced this when Florida voted not to legalize recreational cannabis.
Curaleaf now has access to a US$40-million-dollar credit facility provided by an unnamed “major commercial regional bank.” It will be utilized for operational expenses in the United States and Europe. It has a 7.99 per cent interest rate.
“This is a milestone event for Curaleaf as this credit line provides flexibility traditionally not available to the cannabis sector,” chief executive Boris Jordan said in a news release.
Curaleaf recently opened up its 66th medical dispensary in Florida. The international marijuana operator is not pleased with the state’s decision to prohibit an adult-use market.
“It’s time for responsible regulation that creates jobs and respects individual freedoms for Floridians,” Curaleaf said in a LinkedIn post this spring. “We’re committed to bringing safe, legal recreational marijuana to adults in Florida.”
Another soft quarter from @Curaleaf_Inc : Top-line came in well below expectations and very weak on a multi-year outlook, balance sheet is bloated, and OCF is flat if you adjust for unpaid taxes. Int'l growth was a plus and margins rose modestly, but remained below Tier 1 peers pic.twitter.com/jcBc2Edmew
— CannaVestments (@CannaVestments) November 7, 2024
Read more: Cannabis stocks go up in smoke after failed Florida ballot, Trump victory
Read more: Ohio cannabis market goes gangbusters after recreational bud legalized
Curaleaf makes Forbes list of top 8 pot stocks
It is the largest company by market capitalization on the list at US$3.3 billion.
Green Thumb Industries Inc (OTCMKTS: GTBIF), Trulieve Cannabis Corp (OTCMKTS: TCNNF) and Verano Holdings Corp (OTCMKTS: VRNOF) were listed too.
Also, Cresco Labs Inc (CNSX: CL) (OTCMKTS: CRLBF), Glass House Brands Inc (OTCMKTS: GLASF), Cannabist Company Holdings Inc (OTCMKTS: CBSTF) and WM Technology Inc (NASDAQ: MAPS).
An analyst from Canaccord Genuity Group Inc (TSE: CF), Matt Bottomley, just lowered his share target for Curaleaf from US$8.50 to US$7.25. He is maintaining a Buy rating.
In Q3 results, the cannabis distributor reported that its international revenue had increased by 82 per cent year-over-year to US$29.5 million. However, Curaleaf also reported a net loss of US$44 million and has over US$557 million in outstanding debt.
rowan@mugglehead.com
