Curaleaf Reorganizes Ahead of TSX Listing

Curaleaf USA will have a director appointed by an investor.

New York-based Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) will reorganize its U.S. subsidiary, Curaleaf USA, as part of its plans to list on the Toronto Stock Exchange.

The reorganization involves a new investment in Curaleaf USA, where an independent investor acquired one share of Class A voting stock for $1 million. Previously, Curaleaf Holdings owned 100% of Curaleaf USA.

The investment resulted in the conversion of Curaleaf Holdings’ shares into 999 shares of Class B non-voting stock, which equates to a 99.9% economic interest in Curaleaf USA, according to the company.

Additionally, Curaleaf Holdings and Curaleaf USA entered into a protection agreement, which restricts certain changes in Curaleaf USA’s business operations and financial decisions without approval from Curaleaf Holdings.

Following the investment, a shareholders’ agreement was established between Curaleaf Holdings and the new investor outlining their respective rights and responsibilities regarding Curaleaf USA. The agreement includes terms for the repurchase of the Class A voting stock by Curaleaf USA and the investor’s right to appoint a director to Curaleaf USA’s board.

The reorganization is a key part of Curaleaf Holdings’ strategy to align with the requirements of the Toronto Stock Exchange, which management believes will provide a range of welcomed value and benefits.

TerrAscend Corp. (TSX: TSND) (OTCQX: TRSSF) over the summer made its introduction after delisting from the Canadian Securities Exchange.

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at adam.jackson@crain.com.


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