Following the announcement of a financing, Beacon Securities analyst Russell Stanley remains bullish on Curaleaf (Curaleaf Stock Quote, Chart, News, Analysts, Financials CSE:CURA).
On October 3, CURA announced it had closed a previously announced offering of subordinate voting shares that will net the company $16.2-million.
Stanley said he regards this development as significant progress towards a potential TSX listing.
“Earlier today at its virtual AGM, CURA obtained shareholder approval for all motions, including plans to create a new share class (non-voting exchangeable shares), while enabling holders of current subordinate voting shares to convert to that new share class, “he said. “Earlier this week, CURA completed a C$16.2M marketed offering under its shelf prospectus at C$6/sh. The company noted that the offering is intended to satisfy a condition for a potential TSX listing, with a portion of the proceeds intended for the company’s European operations. The company obtained the requisite noteholder approval during the summer.”
In a research update to clients October 4, Stanley maintained his “Buy” rating and one-year price target of $7.50 on CURA, implying a return of 38 per cent at the time of publication.
The analyst thinks Curaleaf will post Adjusted EBITDA of $298-million on revenue of $1.37-billion in fiscal 2023. He expects those numbers will improve to EBITDA of $416-million on a topline of $1.53-billion the following year.
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