Curaleaf Holdings has resumed trading under the CURLF ticker on the OTCQX Best Market, completing a temporary symbol change linked to its recent 1-for-3 reverse stock split.
The cannabis company said its subordinate voting shares returned to CURLF on July 6 after trading under the temporary CURLD symbol for 20 trading days. The transition followed Curaleaf’s reverse stock split, which became effective on June 5.
Curaleaf continues to trade on the Toronto Stock Exchange under CURA. Its shares now trade under the post-split CUSIP number 23126M300 on both markets.
The company said shareholders don’t need to take any action in connection with the return to the CURLF symbol.
CURLD Ticker Expires After 20-Day Transition
Curaleaf temporarily traded under the symbol CURLD on the U.S. over-the-counter market following the completion of its reverse stock split.
The temporary designation remained in place for 20 trading days in accordance with requirements from the Financial Industry Regulatory Authority and OTC Markets Group. With that transition period now complete, Curaleaf has returned to the CURLF ticker, which was historically used for its OTCQX-listed shares.
Curaleaf described the return to CURLF as part of its effort to provide continuity to shareholders while strengthening its capital markets profile.
Reverse Split Reduced Curaleaf’s Outstanding Share Count
Curaleaf completed its 1-for-3 reverse stock split on June 5, consolidating every three subordinate voting shares into one post-split share.
Before the consolidation, the company had 698.7 million subordinate voting shares outstanding. Based on Curaleaf’s pre-split share count and assuming no additional issuances, the transaction was expected to reduce the outstanding subordinate voting shares to approximately 232.9 million.
Curaleaf also consolidated its multiple voting shares at the same 1-for-3 ratio to preserve the relative rights of shareholders across both classes.
The company didn’t issue fractional post-split subordinate voting shares. Any fractional entitlement resulting from the consolidation was rounded to the nearest whole share.
Registered shareholders were required to submit their pre-split share certificates or direct registration advice and a completed letter of transmittal to Odyssey Trust Company to receive post-split documentation.
Investors holding Curaleaf shares through a broker or other intermediary weren’t required to complete the letter of transmittal process.
Curaleaf Has Linked Reverse Split to Capital Markets Strategy
The reverse stock split forms part of Curaleaf’s broader efforts to strengthen its position in the capital markets as the U.S. cannabis industry’s regulatory environment evolves.
The company previously said it approved the consolidation after consulting with major U.S. stock exchanges and described the move as preparation for a potential future uplisting.
By reducing the number of shares outstanding, the reverse split increases Curaleaf’s per-share trading price on a proportional basis at the time of the consolidation. This can help a company address minimum share price requirements used by major exchanges and certain brokerage platforms.
Curaleaf has also pointed to the potential for increased institutional investor participation as part of its longer-term capital markets strategy.
The company hasn’t announced a confirmed U.S. exchange listing. However, management has repeatedly positioned Curaleaf to respond to potential changes in cannabis regulations and exchange listing rules.
U.S. Exchange Access Remains a Focus for Curaleaf
The return to CURLF completes the immediate administrative process following Curaleaf’s reverse stock split, but the company’s wider listing strategy remains an important issue for cannabis investors.
Curaleaf Chairman and CEO Boris Jordan has emphasized the company’s focus on strengthening its capital markets profile and preparing for opportunities created by changes to the regulatory and exchange-listing landscape.
Major U.S. exchanges have historically presented challenges for plant-touching cannabis companies with operations that remain federally illegal. As a result, large U.S. cannabis operators, including Curaleaf, have relied on Canadian listings and U.S. over-the-counter markets to provide public market access.
Any shift in federal cannabis policy or exchange requirements could change the options available to these companies.
Curaleaf hasn’t provided a timeline for a potential U.S. uplisting. The company’s shares now trade under CURA on the Toronto Stock Exchange and CURLF on the OTCQX Best Market following the completion of the reverse split transition.
The return to its established U.S. ticker removes the temporary CURLD designation and closes the latest step in Curaleaf’s capital markets restructuring.
Rita Ferreira
Rita is a seasoned writer with over five years of experience, having worked with globally renowned platforms, including Forbes and Miister CBD. Her deep knowledge of hemp-related businesses and passion for delivering accurate and concise information distinguish her in the industry. Rita's contributions empower individuals and companies to navigate the complexities of the cannabis world, and her work remains a valuable resource for those seeking a deeper understanding of its potential.
