- Curaleaf (CURA) will close the majority of its operations in California, Colorado and Oregon
- The closures, beginning this month, are motivated by difficult regulatory environments, price compression and lack of enforcement of the illicit market
- Coupled with cultivation and processing consolidation in Massachusetts and a 10-per-cent payroll reduction, the company anticipates over $125 million in free cash flow in 2023
- Curaleaf Holdings is a leading international provider of cannabis consumer products
- Curaleaf (CURA) is down by 3.09 per cent, trading at $4.70 per share
Curaleaf (CURA) will close the majority of its operations in California, Colorado and Oregon.
The closures, beginning this month, are motivated by difficult regulatory environments, price compression and lack of enforcement of the illicit market.
Curaleaf will also consolidate cultivation and processing in Massachusetts to a single facility in Webster, resulting in the closure of its Amesbury facility, as well as reducing its payroll by 10 per cent.
The measures will likely result in non-cash restructuring and impairment charges in Q4.
The company expects to realize $60 million in gross run-rate expense savings in 2023, leading to a positive free cash flow of over $125 million.
“Today’s announcement reflects a decision that we did not arrive at lightly and one that makes sense for our business at this time,” stated CEO Matt Darin.
“We have a fiduciary responsibility to our shareholders to improve margins and fortify our balance sheet by controlling what we can in our business.”
“We believe these states will represent opportunities in the future, but the current price compression… prevents us from generating an acceptable return on our investments. Optimizing the existing portfolio in this way allows us to enter 2023 in a position of strength and further enhances our visibility around continued margin expansion and highly profitable growth. We remain excited about our future growth prospects both domestically and internationally,” he added.
Curaleaf Holdings is a leading international provider of cannabis consumer products. It operates in 19 U.S. states across 147 dispensaries. Curaleaf International is the largest vertically integrated cannabis company in Europe.
Curaleaf (CURA) is down by 3.09 per cent, trading at $4.70 per share as of 2:22 pm EST.
