MONTHLY PROGRESS REPORT
Name of Listed Issuer: Curaleaf Holdings, Inc. (the “Issuer” or “Curaleaf“).
Trading Symbol: CURA
Number of Outstanding Listed Securities: 615,113,318
Date: August 8, 2022
This Monthly Progress Report must be posted before the opening of trading on the fifth trading day of each month. This report is not intended to replace the Issuer’s obligation to separately report material information forthwith upon the information becoming known to management or to post the forms required by Exchange Policies. If material information became known and was reported during the preceding month to which this report relates, this report should refer to the material information, the news release date and the posting date on the Exchange website.
This report is intended to keep investors and the market informed of the Issuer’s ongoing business and management activities that occurred during the preceding month. Do not discuss goals or future plans unless they have crystallized to the point that they are “material information” as defined in the Policies. The discussion in this report must be factual, balanced and non-promotional.
General Instructions
Report on Business
General
Curaleaf Holdings, Inc. (“Curaleaf” or the “Company“) operates as a life science company developing full scale cannabis operations, with core competencies in cultivation, manufacturing, dispensing and medical cannabis research. Curaleaf is a leading vertically integrated medical and wellness cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, the Company has operations in 22 states including operating 136 dispensaries and 26 cultivation sites with a focus on highly populated states including Arizona, Florida, Illinois, Massachusetts, New York, New Jersey and Pennsylvania. The Company leverages its extensive research and development capabilities to distribute cannabis products with the highest standard for safety, effectiveness, consistent quality and customer care. The Company is committed to leading the industry in education and advancement through research and advocacy. The Company markets to medical and adult-use customers through brand strategies intended to build trust and loyalty. Moreover, Curaleaf International Holdings Limited (“Curaleaf International”), a subsidiary of the Issuer, is the largest vertically integrated independent cannabis company in Europe with a unique supply and distribution network throughout the European market, bringing together pioneering science and research with leading cultivation, extraction and production capabilities.
Recent developments regarding the Issuer’s business and operations
On July 12, 2022, Curaleaf’s Select brand announced the launch of “The Farmer’s Select” program.
Please see the Issuer’s press release dated July 12, 2022, filed on the Issuer’s website for more information.
On July 25, 2022, Curaleaf announced the launch of Plant Precision, a new product line targeting specific health and wellness categories.
Please see the Issuer’s press release dated July 25, 2022, filed on the Issuer’s website for more information.
On July 29, 2022, Curaleaf announced the opening of its Tampa Citrus Park dispensary in Florida.
Please see the Issuer’s press release dated July 29, 2022, filed on the Issuer’s website for more information.
Boris Jordan, Executive Chairman, conducted a broadcast interview with CNBC on 7/26 to discuss the Cannabis Administration and Opportunity Act.
Matt Darin, CEO’s quote from the press release titled, “Curaleaf Launches Plant Precision, New Product Line Targeting Specific Health and Wellness Categories,” was picked up by Trendhunter and Benzinga. Mr. Darin’s quote from the press release titled, “Curaleaf Celebrates Opening Of Tampa Citrus Park Dispensary,” was picked up by Cannabis Business Times. Mr. Darin’s quotes from the press release titled, “Curaleaf’s Select Brand Announces Launch of ‘The Farmer’s Select’ Program,” was picked up by Cannabis Business Times and Benzinga. Mr. Darin conducted an email interview for the WeedWeek article titled, “Curaleaf Goes Small With Farmer’s Select.” Mr. Darin’s quote from the press release titled, “Curaleaf International Appoints Miles Worne As President,” was picked up by Benzinga and Cannabis Business Times. Mr. Darin appeared on a panel at the Trailblazers conference in New York on 7/27. Mr. Darin spoke with Toby Channabis, host of the Cannabis Chats Twitter Space, on 7/7 about Curaleaf’s story and the future of the cannabis industry. Mr. Darin’s quote from the press release titled, “Curaleaf Introduces Endless Coast Cannabis-Infused Seltzers in Massachusetts,” was picked up by MJ Brand Insights. Mr. Darin conducted an email interview on 7/5 with Green Market Report for the 7/12 media article titled, “New York Has Potential To Be Number One, If It Can Beat Illicit Dealers”.
On July 25, 2022, Curaleaf announced the launch of Plant Precision, a new product line targeting specific health and wellness categories.
Please see the Issuer’s press release dated July 25, 2022, filed on the Issuer’s website for more information.
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On July 12, 2022, Curaleaf’s Select brand announced the launch of “The Farmer’s Select” program.
Please see the Issuer’s press release dated July 12, 2022, filed on the Issuer’s website for more information.
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See Item 1 for information on new dispensary openings.
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As of July 31, 2022, the Issuer had a total of 5,862 employees, which includes 302 new hires and 235 terminations in the month of July.
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Curaleaf may become threatened by a party, or otherwise become party to litigation from time to time in the ordinary course of business which could adversely affect its business. Among other disputes, Curaleaf is defending against claims in arbitration relating primarily to a lock-up agreement that the former minority shareholders of Curaleaf’s Connecticut operations signed in connection with their receipt of Subordinate Voting Shares of the Issuer in exchange for their minority interest.
Connecticut
No update since previous reporting on Form 7. As reported, the hearing of the case took place in April 2022 and the parties expect the arbitrator to rule in Q3 2022.
Sentia Wellness
Measure 8 Ventures LP et al. v. Khanna et al., Or. No. 22CV00946
No update since previous reporting on Form 7.
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Use of Botanical Terpenes
No update since the Company’s previous Form 7.
Hemp-Derived THC Products
As reported in the Company’s previous Forms 7, there continues to be a proliferation of companies selling THC-containing consumer products (some coupled with CBD ingredients and some without) that are distributed outside existing state sanctioned medical and adult use marijuana programs. These products are almost exclusively sold as “gummies.” The Company continues to monitor the development of this market and the approach of state and federal law enforcement to the distribution of these products.
COVID-19
No update since the Company’s previous Form 7.
Europe COVID-19.
No update since the Company’s previous Form 7.
This document contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as “plans”, “expects” or, “proposed”, “is expected”, “intends”, “anticipates”, ” or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. More particularly and without limitation, this Monthly Progress Report contains forward-looking statements and information concerning (i) the Issuer’s current litigation and arbitration proceedings, (ii) the potential impacts of the COVID-19 pandemic on the Issuer’s business and operations, (iii) the potential impacts on the Company of the Pennsylvania recall and potential legislative changes regarding the use of flavoring and terpenes in cannabis products, and (iv) the potential impacts on the Company of the proliferation of companies selling THC-containing consumer products. Such forward-looking statements and information reflect management’s current beliefs and are based on assumptions made by and information currently available to the Issuer with respect to the matter described in this Monthly Progress Report. Forward-looking statements involve risks and uncertainties, which are based on current expectations as of the date of this Monthly Progress Report and subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Additional information about these assumptions and risks and uncertainties is contained under “Risk Factors” in the Issuer’s management’s discussion and analysis for the year ended December 31, 2021 filed on March 7, 2022 and under “Risk Factors” in the Issuer’s annual information form for the year ended December 31, 2021 filed on March 9, 2022, each of which is available under the Company’s SEDAR profile at www.sedar.com, and in other filings that the Company has made and may make with applicable securities authorities in the future. Forward-looking statements contained herein are made only as to the date of this Monthly Progress Report and the Issuer undertakes no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. The Issuer cautions investors not to place undue reliance on the forward-looking statements contained in this Monthly Progress Report.
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Certificate of Compliance
The undersigned hereby certifies that: