Curaleaf Holdings (CSE: CURA) has finally acquired the final portion of its Florida assets as of this last week, following a court ruling made in June wherein the company was ordered to purchase the remaining portion of the Florida asset, known as Palliatech Florida LLC. The court order was the result of a lawsuit initially filed December 10, 2018, wherein the minority owners of the asset sued the company on a number of causes of action.
While the court did not order specific damages to be paid to the plaintiffs in the case by Curaleaf, the company was ordered to acquire the final portion of Palliatech Florida LLC as part of the settlement. That portion of the settlement was finally resolved this past week, when on August 19 the company issued 2,375,000 subordinate voting shares to Scott Robins and SRC Medical Group in exchange for an 11.38% interest in Palliatech Florida LLC, as well as a 7.97% interest in Curaleaf Florida, LLC.
In addition to the subordinate shares issued, the company agreed to pay US$1,750,000 in cash to retire principal and interest on the portion of secured promissory notes held by SRC Medical Group. In combination with the common shares, valued at C$29.6 million, the company effectively paid c$31.9 million for the 11.38% final stake in its Florida asset.
The firms Florida assets were notably the last two subsidiaries in which the company did not currently own 100% of as of June 30, 2020. Curaleaf’s ownership in the assets has improved considerably over the last several months, with the company starting the year with a 77.2% interest in Palliatech Florida, LLC, and a 70% interest in Curaleaf Florida, LLC. Both those assets are now wholly owned as per the latest filings made by the company with the Canadian Securities Exchange.
Curaleaf Holdings last traded at $10.38 on the CSE.
Information for this briefing was found via Sedar and Curaleaf Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
