Curaleaf Holdings (CSE: CURA) announced this morning that the shareholders of GR Companies, known as Grassroots, have approved of the transaction that will see the firm vend into the public company. It was stated that over 87% of existing shareholders approved of the transaction.
Further, Mitchell Kahn, whom is the co-founder and CEO of Grassroots, indicated that zero “no” votes were received from the shareholders of the company, indicating a high rate of approval to go forward with the transaction. The transaction as a result is now expected to close early next week.
Originally announced on July 17, 2019 – exactly one year ago today – the original definitive agreement was to see Grassroots shareholders receive 102.8 million subordinate voting shares of Curaleaf, in addition to a cash component of $75 million. That agreement however was modified last month, with the cash component removed from the transaction in the face of a cannabis capital markets liquidity crunch. Instead, the company is now expected to issue approximately 118.9 million shares of Curaleaf, equity to roughly 18% on a pro-forma basis.
The closing of the transaction as a whole will follow the announcement earlier this week that certain Arizona assets have already been transferred from that of Grassroots to Curaleaf.
Curaleaf Holdings last traded at $9.65 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.
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