Though the licensed cannabis industry struggles with floundering stock costs and an uncertain future, firms across the sector are in search of new approaches to regain shareholder self-confidence.
Today Curaleaf Holdings, Inc. (CSE: CURA OTCQX: CURLF) announced a significant insider stock obtain aimed at displaying upper management’s continued self-confidence in an capacity to produce a profit moving forward.
Executive Chairman Boris Jordan acquired 100,000 shares of Curaleaf this week, purchasing the stock at an typical of $eight.21 a share, which represents a almost $two premium more than the company’s existing stock cost.
Jordan’s in-firm acquire follows a comparable try to soothe more than skittish investors from Acreage Holdings, Inc. (CSE: ACRG.U OTCQX: ACRGF FSE: 0ZV) earlier this summer time when CEO Kevin Murphy purchased $two million worth of firm shares.
That move failed to bring about a stock cost bump for Acreage, with the company’s stock continuing to fall to almost half its July pricing.
Commenting on the choice to acquire 100,000 firm shares, Boris Jordan issued this statement right now:
This is an fascinating time for Curaleaf, and I have by no means been much more confident in our future. Our business is on the brink of tremendous development, in particular as lawmakers are recognizing the will need to advance regulation like the Secure Banking Act. Curaleaf is in the very best position to lead this business and produce worth for shareholders.
The Safe and Faire Enforcement (Secure) Banking Act sailed by way of the U.S. Residence of Representatives last week, with 91 Republicans and one independent joining much more than 220 Democrats to pass the legislation.
If it passes the Senate and is signed into law by the President, the bill will let banks to function with the cannabis business in spite of a federal prohibition nonetheless in spot. The likelihood of passing the Senate nonetheless remains up in the air having said that, as Senate Majority Leader Mitch McConnell has regularly refused to take up any Democratic measure coming from the Residence this year.
In other Curaleaf news, the firm not too long ago released the initially legal flower solution in New York, and has also opened a seventh dispensary in Arizona.
Though nonetheless properly under the $10 – $11 variety it was trading at back in Might, Curaleaf’s stock has begun to rebound in the final week, at present trading at a cost of $six.76 as of Friday morning.