Curaleaf’s Executive Chairman Boris Jordan has participated in an AMA (Ask Me Anything) on Reddit last Thursday. Many users got into the thread to ask their questions, and the majority seemed to be less about Curaleaf and more about the cannabis industry as a whole.
More than one user indeed asked Boris about the possibility of interstate commerce in the US. Specifically, one user nailed the point when they asked: “The senators will never vote for interstate commerce because they represent their states, not the country, and will want to keep jobs and taxes within their states. Interstate commerce will only benefit a few states in the west. So it will not happen in 3-5 years, if ever. Am I wrong and why?”
Boris replied that Curaleaf is confident that interstate commerce will be a reality, yet he doesn’t provide a time frame for that:” We are very confident interstate commerce will be a reality since when there is federal reform – which we think is inevitable – the commerce clause of the Constitution will ensure that there will be interstate commerce… it will take time – but it will happen.”
Another user asked what’s on the agenda for Curaleaf when it comes to further M&A, especially considering the many operations that other large cannabis operators have been recently carrying out. “Curaleaf has always been price and valuation sensitive and the market is now much more interesting for M&A as valuations have come in dramatically. We are always eager to add to our already substantial footprint in the US.”
A very interesting question asked by another user inquired Boris on the potential cannabis market takeover by large pharma/tobacco companies. “We expect large multinational corporations from various segments to attempt to make acquisitions in the US. Curaleaf has always stated our strategy is to create an industry leader that can compete not only with our peers but also any new entrants into the space,” said he. “Already, several multinationals have found ways to get exposure to the sector. However, we believe after either SAFE Banking or federal legalization there will be a feeding frenzy.”
With the election results in Germany and the expectation of a major change, a user asked Boris what he thought about that, considering that Curaleaf has a foothold in Germany already. “Like in every other market, we want to be the leader,” he replied. “Curaleaf International entered the German market this year and we recently secured our GDP, or "Good Distribution Practices", certification which allows Curaleaf to now release our products directly to the German market. Our first sales took place this summer and we will continue to build out our distribution platform in Germany.”