Pandemic Profits in the Cannabiz
It has been a busy quarter for the legal cannabis industry and cardholding patients far and wide are finding relief -- that is, when the meager mandated supply doesn’t run out at your friendly local cannabis pharmacy.
Of the 50 cannabis companies who reported their quarterly earnings, 81% posted earnings higher than expected.
Curaleaf, which has a Utah location in Lehi, reported a Third Quarter revenue of $317 million, an increase of 2% sequentially and 74% year over year (YoY). They also reported a third quarter 2021 Adjusted EBITDA(1) of $71 million, an increase of 69% YoY, and third quarter cash flow from operations of $52 million or 16% of revenue. After completing the October 1, 2021, deal to acquire Los Suenos Farms, Curaleaf also entered into a definitive agreement to acquire Tryke Companies, a vertically integrated MSO operating in Nevada, Arizona, and Utah.
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Under the terms of the agreement, Curaleaf will pay $40 million USD in cash at closing, with a remaining US$75 million in cash to be paid in equal installments on the first, second and third anniversaries of the closing. The stock portion of the transaction, which consists of 17 million subordinate voting shares of Curaleaf ("Curaleaf Shares"), will also be paid in three equal installments on the first, second and third anniversaries of the closing. An incremental earnout of up to 1 million Curaleaf Shares may be paid in 2023 based on the business exceeding certain EBITDA targets for the year 2022.