Curaleaf Holdings (NASDAQOTH:CURLF) is the largest multistate operator focused on tightly regulated marijuana markets along the East Coast. Curaleaf’s executive chairman, Boris Jordan, also runs Measure 8, a venture fund that recently stirred up some controversy with a questionable acquisition.
In the near future, Measure 8 wants to launch a hedge fund that will bet on U.S. marijuana stocks and against Canadian cannabis producers at the same time. Here are some reasons this strategy makes sense, and some reasons it doesn’t.
Why shorting Canadian producers makes sense
The sales explosion that adult-use marijuana legalization was supposed to ignite is a dud. According to Statistics Canada, inventories rose in February compared with January while sales declined, and it’s not hard to see why. Health Canada insists on putting public safety ahead of the industry’s needs.