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U.S. cannabis firm Curaleaf falls in trading debut following biggest-ever reverse takeover on CSE

Curaleaf opened at $8.70 on the Canadian Securities Exchange (CSE), compared with the offer price of $11.45

TORONTO — U.S. cannabis retailer Curaleaf Holdings Inc opened lower in its trading debut in Toronto on Monday after amassing US$400 million in the biggest equity raising in Canada’s marijuana industry.

Curaleaf opened at $8.70 on the Canadian Securities Exchange (CSE), compared with the offer price of $11.45, which was near the top end of a previously disclosed range of $8.56 to $11.47 per security.

It was trading 17.1 per cent higher at $10.19 at 10:26 a.m. ET, compared with a 0.75 per cent gain in the Toronto stock benchmark and a 0.8 per cent fall in the Horizons Marijuana Life Sciences Index ETF.

“We were quite surprised by the demand and attention that our roadshows got,” Boris Jordan, executive chairman of the Wakefield, Massachusetts-based company, told Reuters. “Being one of the larger players in the U.S., there was a lot of attraction in investing in a company that has a multi-state footprint.”

The cannabis industry saw a flurry of capital raisings, acquisitions and other deals ahead of the legalization of recreational marijuana in Canada on Oct. 17.

After a rally in the run-up to legalization, shares of Canadian cannabis companies have retreated on profit-taking and concerns about valuations.

Even so, Curaleaf raised almost three times its intended $150 million offering, giving it a market value of about $4 billion in the biggest-ever reverse takeover on the CSE. [Read More @ Financial Post]

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