Big changes are afoot at Curaleaf (OTC:CURLF) now that the company has closed a major acquisition.
Management announced Monday morning that the deal for Cura Partners, originally announced in May 2019, had finally closed on Saturday. Cura Partners' key asset is the Select cannabis brand.
When the transaction was originally announced, it was valued at roughly $949 million in the form of 95.5 million subordinate voting shares (SVS) of Curaleaf stock. The terms were subsequently amended to an upfront payment of around $286 million for 55 million of those shares, with the remaining shares coming in the form of incentive bonuses.
It seems Curaleaf believes that absorbing Cura Partners was worth the long wait. "With the completion of the acquisition, Curaleaf solidifies its stance as the largest cannabis operator in the U.S. in terms of operational and wholesale footprint," it said in its press release announcing the news.
The deal will also transform the company's managerial structure. Among other reshuffles and adjustments, it has created a chief marketing officer position, which will be filled by Select brand expert Jason White.
Meanwhile, Curaleaf Chief Financial Officer Neil Davidson has, effective immediately, become the chief operating officer. He displaces current COO Stuart Wilcox, who will "transition to a new role" that was not specified.
The CFO post is being filled by Michael Carlotti, who formerly occupied the same position at cannabis-focused Australis Capital.
Investors didn't seem particularly relieved that Curaleaf, a well-known marijuana stock, had finally tied up the loose ends of this transaction. Curaleaf shares were down about 3.5% in mid-afternoon trading Monday.