Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading U.S. provider of consumer products in cannabis, announced today the closing of its previously announced overnight marketed offering (the “Offering”) of subordinate voting shares of the Company.
The underwriters have exercised their over-allotment option in full, and as a result 18,975,000 subordinate voting shares of the Company were issued at a price of C$16.70 per share for total gross proceeds of C$316,882,500, before deducting the underwriters’ fees and estimated offering expenses.
Canaccord Genuity Corp. acted as 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 Offering was conducted in each of the Provinces of Canada, other than Québec, pursuant to a prospectus supplement to the Company’s base shelf prospectus dated November 2, 2020 (the “Prospectus”) and elsewhere on a private placement basis.
Boris Jordan, Curaleaf Executive Chairman of the Board, commented, “Curaleaf’s successful closing of this C$316,882,500 capital raise represents the largest post-RTO offering by a multi-state operator in the industry and a major milestone in supporting the future growth of our business. Strong support from many of our existing shareholders as well as significant demand from new institutional investors led to the underwriters fully exercising their additional 15% over-allotment option. The closing of the offering follows Curaleaf’s recently completed agreement for a new $50 million revolving credit facility announced on January 11, 2021. These infusions of capital further strengthen Curaleaf’s balance sheet at a crucial inflection point in the sector and significantly lower our average cost of capital, all while providing the Company enhanced flexibility to extend our leadership position in the exciting U.S. cannabis market.”
The Company intends to use the net proceeds of the Offering for working capital and general corporate purposes.
A.G.P./Alliance Global Partners acted as Financial Advisor in connection with the Offering.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The subordinate voting shares have not been and will not be registered under the U.S. Securities Act or any state securities laws. Accordingly, the Offered Securities may not be offered or sold within the United States or to or for the account or benefit of “U.S. persons” unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.
