The MSO’s have been a bit of a bear wrestle in calculating optionality and overhang. Relatively poor disclosure offsets the absence of convertible debt.

Here’s a look at CuraLeaf ($CURA), which holds a pretty steady level stock options and RSUs. Their reported SBC has been pretty consistent as well. The stock options they maintain (~=29MM) are deep in the money, and have an average price of some $4 (est.).

The explosive growth in Goodwill and Intangibles is a reflection of their acquisition based growth strategy.

$CURA’s has another 3.5MM warrants outstanding at a ‘nominal value’ regarding their strike price. They were issued as part of a bridge financing transaction done earlier this year. Yep, pricy. I assume they were struck during the 4th quarter, which would be reflective of the relative tenor of the loan. They may be longer dated, I’ll likely find out in next set of financials. This ‘bridge’ was again re-financed in the 3rd quarter, no mention of warrants in the latest round.

We will see growth in overhang – it’s tracking pretty linearly with share price. The tenors of stock options/RSUs is being held relatively constant, as incremental grants are issued.

That Goodwill/Intangible value is really something else. There is much promise in the assets $CURA’s acquired – the net assets having a value that is much less than the price $CURA paid for them.

The preceding is the opinion of the author, and is in no way intended to be a recommendation to buy or sell any security or derivative. The author holds no position in $CURA