The U.S.-listed shares of Curaleaf Holdings Inc. CURLFCA:CURA tumbled 10.2% toward a record low in morning trading Friday, in the wake of the decision by the New Jersey Cannabis Regulatory Commission (CRC Board) to deny the renewal of the Massachusetts-based company’s cultivation and retail licenses for adult use. “We believe the CRC Board has wrongly interpreted the applicable regulations and that its decision to retaliate against Curaleaf for our need to consolidate production into one local facility is lacking in merit,” said Curaleaf Chairman Boris Jordan. Alliance Global analyst Aaron Grey said that as the CRC Board’s decision went against the CRC’s staff recommendation to renew the licenses, he believes Curaleaf has a case to sue. “Near-term, we look for [Curaleaf] to appeal the decision as soon as possible and move towards legal action via appellate courts or otherwise to get the decision overturned as soon as possible (within days/weeks vs months), as we would note the next board meeting is not scheduled until June 2023 (as a May 4th planned meeting appears canceled),” Grey wrote in a note to clients. Curaleaf’s stock has plunged 46.9% year to date, while the AdvisorShares Pure US Cannabis exchange-traded fund MSOS has dropped 23.3% and the S&P 500 SPX gained 8.0%.
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