Curaleaf stock was one of the biggest percentage gainers in Wednesday’s session after Curaleaf Holdings, Inc. (OTCMKTS:CURLF) (CURA.CN) announced a surprised acquisition of Portland based Cura Partners.

Curaleaf, a company based in Massachusetts, which is involved in growing and processing of cannabis and then selling a range of cannabis based products in its dispensaries, acquired Portland based Cura Partners. Ever since pot was legalised in the state of Oregon, a number of companies dealing in cannabis have been established and among them Cura Partners is the foremost. Cura Partners is the biggest of all the companies in the state and its acquisition by Curaleaf marks a strategic move that could make the latter one of the biggest players of its kind in the country. Following the announcement, the Curaleaf stock soared as investors gave the bill a thumbs up.

Strategic Move

For all intents and purposes, this is a highly strategic move from Curaleaf that further solidifies its position in the recreational cannabis market. The firm operates 44 dispensaries located in Hanover and Oxford, while at the same time it grows cannabis in 12 facilities and processes them in 11 others. In a ingenious deal, the company acquired Cura Partners for $1 billion but the deal was entirely done in stock and that probably goes to show how strategically important this deal is going to be for the company. In addition to that, it is important to note that it was only last year that the company listed Curaleaf stock on the Canadian Stock Exchange. Curaleaf currently enjoys a valuation of $4.5 billion.

Stock Soars

For a company that generated revenues of $87.7 million in 2018 and has projected revenues of $400 million this year, this acquisition will allow Curaleaf to grow into a cannabis giant fairly quickly. Cura Partners, which operates under the label Cura Cannabis Solutions, has produced a range of cannabis infused products over the years and its latest product is the Select Oil line.

In addition to that, the company has a larger presence when compared to Curaleaf and sells its products in California, Arizona and Nevada in addition to Portland. In 2018, it had generated sales to the tune of $117 million and now Curaleaf is going to be in charge of those operations. Curaleaf, known for its Select brand of products, could now grow into one of the United States’ biggest cannabis brands and the optimism was reflected in the markets, as Curaleaf stock soared by as much as 16% following the announcement.