Massachusetts-based Curaleaf, a vertically integrated cannabis company, is seeking a valuation of up to $4 billion.
According to Bloomberg, the company entered into a reverse takeover when Canada’s Lead Ventures combined with PalliaTech in August and changed its name to Curaleaf.
The company plans to offer subscription receipts – which can be exchanged for common shares once the company goes public – at 8.56 to 11.47 Canadian dollars ($6.57-$8.81) per initial receipt. The range for the receipts is based on a diluted pre-offering equity valuation of $3 billion to $4 billion.
Leading the offering are GMP Securities and Canaccord Genuity, which recently served as the lead underwriter on an IPO for CBD company Charlotte’s Web.
GMP Securities also recently published a report that determined U.S. companies are more desirable than their Canadian equivalents because the companies to the north are overvalued.
Curaleaf is focused on legal medical marijuana states with robust populations but limited licenses, including New York, New Jersey, Massachusetts and Florida.
Bloomberg reported that Curaleaf will use the proceeds from its offering to:
- Fund infrastructure construction.
- Purchase minority buyouts.
- Complete certain acquisitions pending regulatory approval.
- Cover general needs.
As Canada gears up to legalize recreational marijuana nationwide Oct. 17, more U.S. companies are completing reverse takeovers of Canadian firms.