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Pot stock to watch Curaleaf Holdings (CURA ) (CURLF Stock Report) and its major shareholder Cura Partners have agreed to review the lockup agreement of the former company’s shares. The company announced this past Wednesday that dating from the closing of the pending acquisition of Cura it will free up 5% of applicable outstanding stock on the last day of each fiscal quarter. Curaleaf had previously agreed to free up 15% of outstanding shares. This marijuana stock to watch expects to release the shares on March 31, which will be the first end-of-quarter date.

Curaleaf mj stock

This Pot stock Revises The Lockup Agreement

The extension of the lockup period is welcome by investors. This is because most of the company’s stocks will continue to be unavailable for selling during the period, and as a result, it might have a stabilizing effect on the share price. Following the agreement, Curaleaf and Cura Partners shareholders holding 1% in the company via Select will not be able to sell their stock after they agreed to the modification. This covers almost 62% of all outstanding shares.

Interestingly the shareholders might not be unloading their shares anyway. Curaleaf confirmed in the announcement that most of the shareholders intended to hold their stock regardless of the partial release from lockup.

Is This Lockup Becoming A New System For Pot Stocks

Curaleaf is not the only pot stock locking its common shares. As this is a common occurrence for stocks that are new to the market. The lockup period bars insiders from trading shares for a specific period following the company’s initial public offering on the exchange. In most cases, the lockup period is mandatory, and the reason for having it is to prevent a massive wave of share sales, which might drive down the value of shares.

CURLF stock

Before this latest amendment, the company had also revised its lockup period in October of 2019. Equally, it had modified the lockup agreement in March last year. In An announcement, Curaleaf stated that the latest modification of the agreement would ensure an orderly increase in its freely traded stock. Also, it minimizes uncertainty that might be associated with the release of the shares.

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