CURLF stock soared Wednesday after Curaleaf Holdings said it is acquiring Cura Partners, owners of the Select brand. On the news, CURLF stock shot up more than 15%, currently up 16.55% as of 1:22 PM EDT.
Here's what we know.
CURLF Stock Flying on Curaleaf Acquisition News
On Wednesday, May 1, Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF) said it signed a definitive agreement to acquire Cura Partners' state-regulated cannabis business. The acquisition is an all-stock transaction that has a value of $948.8 million USD, or $1.27 billion CAD. The acquisition includes Select's (this is a Portland-based cannabis wholesale brand) processing, distribution, manufacturing, and marketing operations. The Curaleaf acquisition also includes all adult-use cannabis products that are under the Select brand.
To finance the deal, which will close in 2019, we know Curaleaf Holdings will issue roughly 95.6 million subordinated voting shares. In order for there to not to be a conflict of interest, the Curaleaf acquisition was negotiated by a special committee.
"The transformational acquisition of Cura and the Select brand is another step in our journey to create the most accessible cannabis brands in the U.S," says Curaleaf CEO Joseph Lusardi. "The combination of Curaleaf and Select is a perfect fit."
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The news was met with smiles on the market, as CURLF stock climbed into the double-digits. As of 1:36 PM EDT, CURLF stock is trading at $11.66 on the OTC market, which puts the stock up 17.66%.
Meanwhile, on the CSE, CURA stock is trading at $15.70, putting it up 18.12% as of 1:32 PM EDT.
Optimism All Around
The transaction is going to do several things, and will especially benefit CURLF in the long run. Optimistic about the news, Joseph Lusardi says his company plans "to create significant operational synergies from the integration of Select’s wholesale business." But there are a lot of other people optimistic about the acquisition as well.
Speaking on the news, founder of Select, Cameron Forni, says he "could not be more excited about this transaction with Curaleaf and what it means for the Select brand and for our industry."
Takeaway
What do you think about the Curaleaf acquisition? Do you think CURLF stock can continue to climb as we near the closing bell? Let us know what you think in the comments below.
Featured image: Canva
