U.S. multi-state operator (MSO) Curaleaf Holdings' (CURLF -0.09%) stock did even better than the bull-dominated stock market on Thursday. The marijuana-company's shares rose by 3%, trouncing the 0.6% gain of the S&P 500 index, on the back of a new acquisition.
Thursday morning, Curaleaf announced it has entered into a definitive agreement to purchase an Arizona dispensary owner called Natural Remedy Patient Center. This will be effected in a mix of cash and Curaleaf stock.
Specifically, the company will pay $12 million in cash, with subordinate voting shares comprising the remainder. The acquisition is expected to close in January.
The store is located in the town of Stafford, but it's not going to stay there. Curaleaf plans to relocate it to a 9,000-square-foot space in the city of Scottsdale, a sizable municipality that has all of four marijuana dispensaries at the moment.
Combined with the company's pending acquisition of Tryke Companies -- a $286 million deal announced last month -- Natural Remedy Patient Center will give Curaleaf a total of 12 retail outlets in Arizona.
This is likely what excited investors on Thursday. Arizona is one of the more promising states that have recently legalized the consumption and sale of recreational marijuana. Its recreational market was opened in January, and in October, sales of the recreational product hit a record monthly high of just under $58 million.
One reason that figure isn't higher is because parts of the state are still relatively light in terms of dispensary count -- with Scottsdale being a prime example. With its dozen stores coming on stream, Curaleaf is now well poised to benefit from almost certain growth in the still-fresh recreational market.
Meanwhile, Natural Remedy Patient center is well within the company's present financial means. At the end of September, Curaleaf had almost 402 million Canadian dollars ($312 million) on its books, and earlier this month, it closed a $425 million debt issue.