Curaleaf Holdings Inc. (CNSX: CURA; OTCMKTS: CURLF) announced that the company has struck an agreement with its shareholders to further extend its lock-up period. This new agreement for the lock-up period would only release 5% of the shares owned by insiders on the last day of each calendar quarter starting March 31, 2020.
This new agreement comes in connection with Curaleaf’s planned closing of the deal to acquire Select, which after the deal closes, will see approximately 62% of the shares outstanding being subject to the new extended lock-up.
This is good news for the current shareholders in the short term, as it ensures that the market will not be flooded with a huge supply of Curaleaf shares in the coming few months or so. However, this is more of a stop-gap measure rather than a permanent solution. At some point, insiders would get the chance to sell their shares and this new agreement simply kicks the can down the road.
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