Curaleaf picks up another $5 million through private placement

31 0

The cannabis company is receiving over $25 million in funding this year

Curaleaf Holdings Inc., a medical and wellness cannabis company, has collected another $5 million of funds coming from a previously announced private placement offering early this month. The Massachusetts-based company received this investment from the second tranche of its private placement, and it just announced that the closing of this process with a total amount of $25.39 million. Under this second tranche, the subscriber acquired 842,269 Subordinate Voting Shares for $6.01 each.

“Our successful completion of this private placement further strengthens Curaleaf’s balance sheet and provides additional flexibility to support our future expansion initiatives as we look to extend our leadership position in the fast-growing U.S. cannabis market,” said Joseph Lusardi, CEO of Curaleaf. Alongside the closing of this private offering, the proposed and pending acquisition of GR Companies, Inc. known as Grassroots was also connected. Part of the proceeds Curaleaf got from this offering will be used to fund certain expansion projects with great returns as well as using part of that capital to support general corporate expenses.

Canaccord Genuity Corp. was the sole bookrunner and agent of this private placement offering. These securities can’t, nor will they be, registered under the US Securities Act of 1933 or under any state laws. Curaleaf is one of the largest vertically-integrated multi-state cannabis operators that operates two popular brands, Curaleaf and Select, which are high-quality products available in 18 states with 57 dispensaries, 15 cultivation sites and 24 processing sites. This is one of the largest cannabis ventures, giving jobs to 2,200 people across the US.