Curaleaf Holdings Inc. said late Wednesday that CVS Health Corp. will carry its line of CBD products, an important deal for the U.S. cannabis retailer that could put its CBD products in front of many more Americans.
Executives on Curaleaf’s earnings conference call said CVS would begin to carry its Curaleaf Hemp lotions and transdermal patches — which include items with cannabidiol, commonly known as CBD — in 800 stores across 10 states in the U.S. Chief Executive Joe Lusardi said Wednesday that the products would be available by Friday and through the CVS website “soon.”
Curaleaf CURLF, +3.44% shares ended Wednesday’s session at $6.86, giving it a market capitalization of more than $3 billion; the company’s shares do not trade after hours. CVS CVS, -1.63% shares were down less than 0.1% in extended trading after the announcement.
The U.S. Food and Drug Administration has said that CBD remains a drug ingredient and as a result is illegal to add to food and health products. CBD, which is derived from the cannabis plant, is considered by many to be non-psychoactive, unlike its fellow cannabinoid, tetrahydrocannabinol, or THC.
Read this: Hemp is now legal in the U.S., so what does that mean for pot companies?
A Curaleaf spokeswoman could not immediately respond to questions MarketWatch had about the FDA’s position and Curaleaf’s product line. CVS did not immediately return a request for comment.
Curaleaf on Wednesday reported widening net losses, while growing revenue more than 400%. The company reported fourth-quarter net losses of $16.5 million, or 4 cents a share, compared with profits of $624,000, or zero cents a share in the year-ago quarter. Revenue rose to $32 million from $6.3 million in the year-ago period, excluding revenue from managed entities.
Curaleaf said insiders and investors agreed to voluntarily lock up their shares until April 29, representing roughly 3% of shares and about an additional 80% of outstanding shares will voluntarily be locked up until Oct. 20. The company reiterated its full-year revenue guidance of $400 million.
Curaleaf stock has gained 50% in the past three months, as the S&P 500 index SPX, -0.29% has increased 15%.
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