Curaleaf stock is moving higher in the early morning session after Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF) struck an agreement with its shareholders to extend its lock-up period.
Key Points to Watch
In a development that is likely to be welcomed by its investors, Curaleaf Holdings announced today that key shareholders have agreed to an extended lock-up period. This means that large chunks of Curaleaf stock will continue to be unable to be sold during the lockup period, which could have a stabilizing effect on the stock price.
All shareholders in Curaleaf and Cura Partners who hold 1% in the company through Select will be barred from selling their shares due to this agreement.
As per the terms of the previous lock-up agreement, the shareholders were allowed to sell 15% of their lock-up shares in each quarter. With the extension agreement, however, shareholders are permitted to sell only 5% of their total shares under lock-up. The shareholders will be allowed to sell their first tranche of shares in March this year.
At the time of writing, Curaleaf stock is trading higher by 2.55% at C$9.20.
It has been an eventful month for Curaleaf Holdings so far, and earlier this month, the company made another major announcement.
Back on January 6, Curaleaf announced that it received a license to establish a medical cannabis dispensary in Utah. This is a highly important development for Curaleaf because it will allow the company to become a dominant player in one of the designated regions of the state.
The state of Utah is giving away a total of 14 permits across the four designated regions. Curaleaf will be operating in Region 3, and the regulatory body has awarded only four dispensary licenses in total for the region.
Curaleaf stock has gained over 15% so far this month.
Featured image: Canva