Cannabis giant Curaleaf Holdings, Inc. (CSE:CURA) (OTCQX: CURLF) will undertake an internal reorganization of its U.S. operations, related to receiving conditional approval from the Toronto Stock Exchange to list the company’s subordinate voting shares on the TSX.
What Happened
The company's wholly-owned subsidiary entered into a subscription agreement with a third-party investor that is not affiliated with the company, Curaleaf USA, or the control person of the company, under which Curaleaf USA issued to the investor one share of Class A voting and non-participating common stock, for an aggregate subscription amount of $1 million.
Details
Before the investment, the company held common stock of Curaleaf USA, representing 100% of the issued and outstanding shares of Curaleaf USA. Concurrently with the closing of the investment and per the seventh amended and restated certificate of incorporation of Curaleaf USA filed immediately before the execution of the subscription agreement, such common stock has been automatically exchanged for 999 shares of class B non-voting and participating common stock.
Following the closing of the Investment by the terms of the subscription agreement, the investor now holds all of the issued and outstanding class A voting stock and voting ...