Wakefield MA’s Curaleaf lists on CSE with US $4.48B valuation

Lead Ventures Inc. has completed its previously announced business combination with Curaleaf, Inc., formerly, PalliaTech, Inc., constituting a reverse take-over (RTO) of Lead Ventures by Curaleaf.

As part of the transaction, 1177687 B.C. Ltd. (Curaleaf FinCo) on October 24, 2018 completed brokered private placement and issued 45,422,167 subscription receipts at a price of CDN $11.45 per subscription receipt for gross proceeds of CDN $520,083,812 or US $400,002,932. The company had previously planned to raise US $150 million at a price of CDN $10 per subscription receipt.

The offering syndicate was led by GMP Securities L.P. and Canaccord Genuity Corp. and including Cormark Securities Inc., Eight Capital and Haywood Securities Inc.

The resulting issuer has changed its name to Curaleaf Holdings, Inc. with the implementation of dual class of shares: multiple voting shares. and subordinated voting shares.

Curaleaf will have 457.6 million total shares issued and outstanding and 508.5 million shares issued on a fully diluted basis, valuing its 100% equity at CDN $5,822 million or US $4,478 million.

The Curaleaf/Lead Ventures RTO becomes one of the largest RTOs to date on Canadian exchanges.

Curaleaf has received conditional approval from the Canadian Securities Exchange (CSE) for the listing of its subordinate voting shares, which are expected to commence trading on the CSE under the ticker symbol “CURA” at market open on Monday, October 29, 2018.

Wakefield, Massachusetts based Curaleaf is focused on owning and operating licensed cannabis businesses which cultivate, process and/or dispense cannabis and cannabis derived products in the United States. With a presence in 12 states, Curaleaf currently owns and operates 28 dispensaries, 12 cultivation sites and 9 processing sites.

photo credit: Curaleaf

News Release

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Curaleaf Holdings, Inc. Announces Completion of its Business Combination

Vancouver, B.C. – October 26, 2018 – Curaleaf Holdings, Inc. (the “Company”), formerly Lead Ventures Inc. (“LVI”), is pleased to announce that it has completed its previously announced business combination (the “Business Combination”) with Curaleaf, Inc. (formerly, PalliaTech, Inc.) (“Curaleaf”) in connection with Curaleaf’s previously announced brokered private placement offering (the “Offering”) led by GMP Securities L.P. and Canaccord Genuity Corp. (the “Co-lead Agents”), on behalf of a syndicate of agents including Cormark Securities Inc., Eight Capital and Haywood Securities Inc. (collectively, the “Agents”).

Completion of the Offering

On October 24, 2018, 1177687 B.C. Ltd. (“Curaleaf FinCo”) completed the Offering pursuant to which Curaleaf FinCo issued 45,422,167 subscription receipts (the “Subscription Receipts”) at a price of C$11.45 per Subscription Receipt for gross proceeds of C$520,083,812 or US$400,002,932 (assuming C$1.3002/US$1.0 exchange rate at the time of closing of the books on October 24, 2018). In connection with the closing of the Business Combination, 45,422,167 Subscription Receipts issued pursuant to the Offering were automatically converted into 45,422,167 common shares in the capital of Curaleaf FinCo and then exchanged into Subordinated Voting Shares on a one-for-one basis.

Completion of the Business Combination and Escrow Release

The Business Combination was completed by way of a three-cornered amalgamation, pursuant to which 1177679 B.C. Ltd., a wholly owned subsidiary of the Company, amalgamated with Curaleaf FinCo to form a new company, which was subsequently wound up into the Company and now holds all of the assets of Curaleaf.

As part of the Business Combination, the Company implemented a dual class voting structure on October 25, 2018, including the creation of a new class of subordinated voting shares (the “Subordinated Voting Shares”) and a new class of multiple voting shares (the “Multiple Voting Shares”) and changed its name to “Curaleaf Holdings, Inc.”. Each Subordinated Voting Share carries the right to one vote per share on all matters to be voted on by shareholders of the Company and each Multiple Voting Share carries the right to 15 votes per share on all matters to be voted on by shareholders of the Company.

The proceeds from the Offering, less certain expenses, were placed into escrow on completion of the Offering. The escrowed proceeds from the Offering, less the commission of the Agents and certain fees and expenses, will be released from escrow to the Company at Company’s instruction.

Following the Business Combination, the Company will have 457.6 million total shares issued and outstanding and 508.5 million shares issued on a fully diluted basis, valuing the Company’s 100% equity at C$5,822 million or US$4,478 million (assuming C$1.3002/US$1.0 exchange rate at the time of closing of the books on October 24, 2018).

The Company has received conditional approval from the Canadian Securities Exchange (“CSE”) for the listing of its Subordinated Voting Shares, which are expected to commence trading on the CSE under the ticker symbol “CURA” at market open on Monday, October 29, 2018. Listing is subject to the Company fulfilling all listing requirements of the CSE.
Full details of the Company including the Business Combination are set out in Curaleaf’s listing statement dated October 25, 2018 (the “Listing Statement”). A copy of the Listing Statement can be found under LVI’s (now the Company’s) profile on SEDAR at www.sedar.com.

About Curaleaf Holdings, Inc.

The Company is the parent of Curaleaf, Inc. (“Curaleaf”). Curaleaf is a leading vertically integrated cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, Curaleaf has a presence in 12 states. Curaleaf owns and operates 28 dispensaries, 12 cultivation sites and 9 processing sites with a focus on highly populated, limited license states, including Florida, Massachusetts, New Jersey and New York. Curaleaf leverages its extensive research and development capabilities to distribute cannabis products in multiple formats with the highest standard for safety, effectiveness, consistent quality and customer care. Curaleaf is committed to being the industry’s leading resource in education and advancement through research and advocacy. Curaleaf’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

For more information please visit www.curaleaf.com.

The CSE (operated by CNSX Markets Inc.) has in no way passed upon the merits of the Proposed Business Combination and has neither approved nor disapproved of the contents of this press release.

This announcement does not constitute an offer, invitation or recommendation to subscribe for or purchase any securities and neither this announcement nor anything contained in it shall form the basis of any contract or commitment. In particular, this announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in any other jurisdiction in which such an offer would be illegal.

The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and accordingly may not be offered or sold within the United States or to “U.S. persons”, as such term is defined in Regulation S promulgated under the U.S. Securities Act (“U.S. Persons”), except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Company’s securities to, or for the account or benefit of, persons in the United States or U.S. Persons. For more information about the transactions described herein, please refer to the Listing Statement.

Company Contact:
Curaleaf, Inc.
Christine Rigby, SVP, Investor Relations
PH: (781) 451-0145
Info@curaleaf.com

Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
PH: (212) 896-1260
IR@curaleaf.com

Media Contact:
KCSA Strategic Communications
Anne Donohoe, Managing Director
PH: (347) 487-6199
Media@curaleaf.com

Ted Liu

Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal and CanadaMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted was the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, the most sophisticated and advanced all private capital and public market financing database.