Curaleaf Announces 16.5M-Share Stock Offering

In an effort to raise more than C$275 million, Curaleaf Holdings, Inc. is offering 16.5 million subordinate voting shares at a C$16.70 per share price, the company announced yesterday.

In a statement, Boris Jordan, Curaleaf executive chairman of the board, anticipated the results of Tuesday’s Special Election in Georgia – which gave Democrats control of the Senate – would accelerate federal legalization in the U.S. and “newly enhanced opportunities in the sector.”

Curaleaf, based in Wakefield, Massachusetts, operates in 20 states and is traded on the Canadian Securities Exchange under the “CURA” symbol and on the U.S. OTC market under “CURLF.”

“With the recent adult-use cannabis deregulation initiatives in New Jersey and Arizona, and New York announcing its proposal to legalize and create a comprehensive system to oversee and regulate cannabis as part of the 2021 State of the State, now is a pivotal time to raise additional capital to support our growth initiatives as we continue to build out our capabilities in these new markets. With the added balance sheet flexibility this offering will provide, Curaleaf will be increasingly well positioned to leverage potential high-return organic and well as inorganic growth opportunities going forward.” – Jordan in a press release

The company indicates it plans to use the net proceeds of the funds raised “for working capital and general corporate purposes.” Additionally, the firm said it intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the securities on the same terms and conditions as the proposed offering. Canaccord Genuity is serving as the lead underwriter for the offering on behalf of a syndicate of underwriters including Beacon Securities Limited, Cantor Fitzgerald Canada Corp., Cormark Securities Inc., Eight Capital, and Haywood Securities Inc., the company said.

In November, Curaleaf reported record financial and operational results for the third quarter of the year with pro forma revenue of $215.3 million, and year-to-date managed revenue of $419.6 million, including third-quarter revenues of $193.2 million – a 164% increase.