Curaleaf: IIROC Temporarily Halts Trading of This Cannabis Stock
The cannabis stock Curaleaf Holdings Inc (CNSX: CURA) (OTCMKTS: CURLF), was temporarily halted for trading on June 22, 2020. The Investment Industry Regulatory Organization of Canada, or the IIROC, issued this press release detailing the issue – halting the trading of this cannabis stock.
Trading activities in this cannabis stock resumed after the IIROC released a fresh circular at 12.30 PM Eastern Time. The regulatory body, IIROC, has the authority to impose halts to ensure fair pricing of stocks and orderly conduct in the stock markets.
On Monday, Curaleaf stock in the Canadian markets gained 0.38%. Whereas, in the OTC markets CURLF gained 0.85%. This hemp stock is currently trading at CA$8 with a market cap in excess of CA$3.5 billion.
Curaleaf and Grassroot acquisition amendment
In a bid to expand, Curaleaf had announced a strategic plan to acquire GR Companies Inc. (Grassroots Cannabis) in July 2019. Initially, the consideration was fixed at $75 million cash component and approximately $40 million subordinate voting shares in Curaleaf.
This agreement was revised on Monday – which led to the temporary trading halt by IIROC. The new agreement eliminated the $75 million in cash consideration. Instead of the cash payment, GR Companies has agreed to increase the issue of Curaleaf subordinate voting shares to $90.1 million.
These shares will be priced based on a volume-weighted average price for a 10-day period. Additionally, some of Grassroots’ units in the state of Illinois, Ohio, and Maryland could be designated as assets for sale.
GR Companies is a private player in the cannabis market with a presence in many states in the US. Since Grassroots is a large vertically integrated company, the acquisition holds a lot of significance for Curaleaf’s business.
What next for Curaleaf investors?
In the first week of June, the DBMR (Data Bridge Market Research) report forecasted a 20% compounding annual growth rate in the legal cannabis markets. This report was cited in a Global Newswire publication that continued to claim that the Global Legalized Marijuana products could reach a market valuation of up to $91 billion by 2027.
With a lot of untapped market potential and 165,000 registered patents in its name, Curaleaf has plenty of room to grow in the legal cannabis markets. It is a market leader among the vertically integrated cannabis operators in the United States. Currently, the company has over 15 cultivation sites, 24 processing sites, and 57 dispensaries – spread across 17 states.
Curaleaf: IIROC Temporarily Halts Trading of This Cannabis Stock
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