While the licensed cannabis industry struggles with floundering stock prices and an uncertain future, companies across the sector are seeking new ways to regain shareholder confidence.
Today Curaleaf Holdings, Inc. (CSE: CURA; OTCQX: CURLF) announced a major insider stock purchase aimed at showing upper management’s continued confidence in an ability to generate a profit moving forward.
Executive Chairman Boris Jordan acquired 100,000 shares of Curaleaf this week, buying the stock at an average of $8.21 a share, which represents a nearly $2 premium over the company’s current stock price.
Jordan’s in-company buy follows a similar attempt to soothe over skittish investors from Acreage Holdings, Inc. (CSE: ACRG.U; OTCQX: ACRGF; FSE: 0ZV) earlier this summer when CEO Kevin Murphy bought $2 million worth of company shares.
That move failed to bring about a stock price bump for Acreage, with the company’s stock continuing to fall to nearly half its July pricing.
Commenting on the decision to buy 100,000 company shares, Boris Jordan issued this statement today:
The Secure and Faire Enforcement (SAFE) Banking Act sailed through the U.S. House of Representatives last week, with 91 Republicans and one independent joining more than 220 Democrats to pass the legislation.
If it passes the Senate and is signed into law by the President, the bill will allow banks to work with the cannabis industry despite a federal prohibition still in place. The likelihood of passing the Senate still remains up in the air however, as Senate Majority Leader Mitch McConnell has consistently refused to take up any Democratic measure coming from the House this year.
In other Curaleaf news, the company recently released the first legal flower product in New York, and has also opened a seventh dispensary in Arizona.
While still well below the $10 – $11 range it was trading at back in May, Curaleaf’s stock has begun to rebound in the last week, currently trading at a price of $6.76 as of Friday morning.
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