CapStone Holdings Invests $50M Into Cannabis Operator Curaleaf

CapStone Holdings Inc. said Monday it has decided to take a stake in the cannabis industry by investing $50 million in Curaleaf Holdings Inc CURA (OTC: CURLF).

Wakefield, Massachusetts-based Curaleaf, a medical and wellness cannabis operator, manufactures a pharmaceutical-grade, standardized dose medical cannabis at 15 cultivation sites and 24 processing sites.

Its Curaleaf and Select brands are available in 57 dispensaries the company manages. It employs over 2,200 people across 17 states.

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"Curaleaf has quickly become a leader in a $16 billion industry through thoughtful acquisitions, licensing, product development, and expansion of retail dispensaries into new markets across the country," Keith Stone, CapStone Holdings chairman and founder, said in a statement.

In early March, Curaleaf announced its purchase of Colorado edible producer BlueKudu. By obtaining BlueKudu, Curaleaf has expanded its assets to include an 8,400-square-foot infusion kitchen and processing facility located in Denver.

The acquisition of the three Arrow Alternative Care dispensaries in Connecticut came three weeks later, providing the company with dispensaries in Hartford, Milford and Stamford metro areas.

CapStone's Heather Stone said the firm's goal is to improve people's quality of life, naming Curaleaf a "logical choice" considering the number of states where physicians are allowed to prescribe cannabis-based medicines to their patients.

Previously, Capstone was one of many investors to take part in Curaleaf's $300-million senior loan facility deal, which the company closed in mid-January.

Curaleaf shares were up 4.23% at $4.68 at the time of publication Monday.

Photo courtesy of Curaleaf.