Cannabis stocks got a lift from this week’s election results, and that was good news for the founders of Cura Partners — also known as Cura Cannabis — the Portland company acquired early this year by Curaleaf Holdings Inc.
Curaleaf’s stock rose 17.5% this week as several more states adopted adult-use cannabis measures. The prospect of a Democrat in the White House also fueled hopes for federal reforms that could further boost the industry.
The election-week rally put Curaleaf’s stock up about 50 percent since it closed the deal for Cura, known for its Select vape products. And it likely translates to tens of millions in new wealth for Cura’s former owners.
Co-founder Nitin Khanna and his brother Karan Khanna were the largest Cura shareholders, with 17% stakes each through a jointly held limited liability company, according to 2019 filings with the Oregon Liquor Control Commission.
Based on that, Curaleaf stakes worth $58 million for each brother as of the acquisition’s close could now be worth nearly $88 million.
Another big Cura shareholder was co-founder and former CEO Cameron Forni, with 9.2% of the company's shares. Portland attorneys Nicholas J. Slinde and Philip J. Nelson also each owned about 5% of Cura, according to the OLCC records.
The former Cura owners likely retain the vast portion of the Curaleaf shares they received in the nearly $400 million acquisition — a lock-up agreement gives them access to just 5% of their stock at the end of each subsequent quarter post-close.
Curaleaf's stock is listed on the Canadian Securities Exchange, and trades over the counter in the United States.
Cura’s former shareholders could earn millions of dollars more from the acquisition if Select products hit certain sales targets this year.
