On the hunt for more revenue to fund expansion plans as legalization efforts continue nationwide, Curaleaf Holdings Inc. (CSE: CURA; OTCQX: CURLF) just netted slightly north of $28 million in a property deal.
Under the terms of the sale-leaseback agreement with managed real estate investment group Freehold Properties, Curaleaf has sold off ownership of several real estate holdings while maintaining usage of those facilities.
The sold sites will continue to be utilized for grow operations, processing and distribution, and dispensing products directly to patients and consumers.
Curaleaf’s Chief Executive Officer Joseph Lusardi commented on the newly-inked deal:
Curaleaf’s Q2 2019 earnings report and conference call are scheduled for tomorrow — August 27 — after the close of business.
Specifics on additional real estate deals are expected to be announced at that call or shortly after as the company eyes new expansion with additional cultivation sites.
Curaleaf has been working to generate more positive headlines and turn around a stock decline since becoming the first major U.S. cannabis company to be publicly chastised by the FDA for health claims on hemp CBD products.
That letter of warning from the Food and Drug Administration arrived just a week after Curaleaf instituted a new compliance officer structure to ensure the company meets local, state, and federal regulations.
The sudden surge in CBD product popularity has prompted increased intervention from the FDA since the 2018 Farm Bill legalized industrial hemp farming. Aside from warning letters sent out to companies making health claims about CBD treating diseases, new and more strict industry-wide regulations are expected to land in the U.S. by the end of the year.
In other recent Curaleaf news, the company launched a new initiative with the Veterans Cannabis Project (VCP) earlier this month. During that project’s collaboration period, a box of five pre-rolls will be available in Oregon stores, with a portion of those sales going to the VCP to be utilized towards veterans awareness campaigns.