Multi-state cannabis operator Curaleaf Holdings (CSE:CURA) dropped in value following its debut in the Canadian public market on Monday (October 29).
Curaleaf, formerly Lead Ventures, completed a business combination with Curaleaf and raised approximately C$520 million to start raising capital in Canada.
The company made its debut on the Canadian Securities Exchange (CSE) under the ticker symbol “CURA” on Monday. Set at an initial offering price of C$11.45, the stock opened at C$8.70.
At market closure on Monday, the stock declined to C$7.30. The exchange indicated the stock reached a day high of C$10.79.
Curaleaf holds a presence in Arizona, Connecticut, Florida, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York and Oregon.
The company boasted its ownership of 28 cannabis dispensaries, 12 cultivation facilities and 9 processing sites across the US.
Boris Jordan, executive chairman for Curaleaf, told Reuters the company was surprised by the demand and attention it had earned.
“Being one of the larger players in the US, there was a lot of attraction in investing in a company that has a multi-state footprint,” Jordan said.
Following the legalization of adult-use of cannabis in Canada, investors have turned their attention to the US market as the next potential booming area for the sector.
Cannabis investors are able to obtain exposure into the US by investing in multi-state operators with assets in legal cannabis states.
These companies, if public, have turned to the favorable Canadian public sector to raise capital through the CSE.
This exchange, unlike the TMX Group ones, doesn’t restrict cannabis operations in a country where the drug remains illegal on a federal scale.
“We remain committed to growing our business through aggressive organic growth and the strategic deployment of capital into accretive acquisitions that extend our brand into the most attractive US markets,” Joseph Lusardi, CEO of Curaleaf, said in a company statement.
The US play has gained steam as a leading play in the cannabis public market as more companies make public debuts to take advantage of the markets’ interest in the sector.
Acreage Holdings announced a reverse takeover to take its stock into the CSE. The company similarly manages assets in legal cannabis states.
Acreage made headlines by adding ex-political figures, such as former Canadian prime minister Brian Mulroney and former Speaker of the United States House of Representatives John Boehner, to its board of directors.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.