Curaleaf Holdings Inc. shares soared Wednesday to lead the cannabis sector higher, after the company announced it is acquiring Cura Partners, the parent of the Select brand, in an all-stock deal valued at C$1.27 billion, or about $949 million.
Curaleaf shares CURLF, +0.06% shot up 15% on the news, which includes all of the Portland, Ore.-based company’s manufacturing, processing, distribution, marketing and retailing operations and all adult-use cannabis products marketed under the Select brand name, including its intellectual property. Select products are sold at more than 900 retailers in states that have legalized cannabis.
Curaleaf will issue about 95.6 million subordinated voting shares to finance the deal, which is expected to close this year. Like many deals in the new cannabis sector, this one constitutes a “related party transaction,” because Curaleaf chairman Boris Jordan has an interest in the proposed deal, Curaleaf said in a statement.
To avoid any appearance of conflict of interest, the deal was negotiated by management and advisers under a special committee, which paid for a fairness