Verano Expands Operations with Key Acquisitions
![Verano Expands Operations with Key Acquisitions](https://investorshangout.com/images/blog/investors-hangout-newswire.jpg)
Verano Expands Operations with Key Acquisitions
Acquisitions Expand Verano’s Footprint to 14 States, 15 Cultivation and Production Facilities, and 150 Dispensaries Nationwide
Chicago — Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced the closing of acquisitions pursuant to agreements previously announced, acquiring all ownership interests of three subsidiaries of The Cannabist Company Holdings Inc. (Cboe CA: CBST) (OTCQX: CBSTF) (“The Cannabist Company”), one of the most experienced cultivators, manufacturers and retailers of cannabis products in the U.S. Two subsidiaries, 203 Organix, L.L.C. and Salubrious Wellness Center, Inc. (together, the “Arizona Operations”) operate in Arizona, and the third subsidiary, Columbia Care Eastern Virginia LLC, operates in Virginia (the “Virginia Operations”).
Strategic Growth in Virginia and Arizona
In Virginia, Verano will be the sole vertical cannabis operator in HSA 5 in Eastern Virginia, a region with nearly two million residents along with 14 million annual tourists. Verano gains an active cultivation and production facility and six operational dispensaries in Hampton, Norfolk, Portsmouth, Suffolk, Virginia Beach, and Williamsburg. In Arizona, Verano enhances its retail footprint to eight locations by adding stores in Tempe and Prescott, complementing the existing six Zen Leaf dispensaries and multiple cultivation and processing facilities.
Management Insights on Acquisitions
“Our entrance into Virginia provides near-term growth potential within the existing medical program, and adds yet another valuable market to our footprint with a high probability of adult use in the near future,” said George Archos, Verano founder, Chairman and Chief Executive Officer. “Leveraging our extensive M&A history and experience, we are actively integrating these facilities into our network, and will build on our legacy as a top-tier medical operator in preparation for potential adult use in Virginia. Additionally, expanding our Arizona operations allows us to further scale our retail footprint and broaden access to our award-winning brand portfolio with increased cultivation capacity and high-performing dispensaries in attractive locations.”
The Cannabist Company’s Perspective
David Hart, CEO of The Cannabist Company, remarked, “Verano has been a great partner through a very thoughtful transaction, and we are excited for what the future holds for our Eastern Virginia and Arizona teams. This was a critical move for us as we continue our path of building a better business and reshaping our footprint to improve our financial footing, ultimately bringing us closer to profitability.”
Ongoing Operations in Virginia
The Cannabist Company will maintain operations in the Richmond region (HSA 4), featuring approximately 80,000 square feet of cultivation and manufacturing capacity, five operational retail locations, and one under development. With the completion of the Arizona transactions, The Cannabist Company operates in 14 markets, which are set to decrease to 12 once the divestments in Florida and Washington, DC are finalized.
Financial Insights on the Transaction
The total consideration for the Arizona Operations was $15 million, paid in cash upon signing, with adjustments pending. For the Virginia Operations, the total consideration, subject to adjustments, reached $90 million, comprised of $20 million in cash, $40 million in Class A subordinate voting shares, and a $30 million promissory note.
About Verano Holdings Corp.
Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) is recognized as one of the U.S. cannabis industry’s leading companies, noted for its robust revenue, wide geographical reach, and strong brand performance. Verano is a vertically integrated, multi-state operator committed to providing a superior cannabis shopping experience in both medical and adult-use markets under the Zen Leaf and MÜV dispensary brands. Verano produces a diverse suite of high-quality, regulated cannabis products across a broad spectrum of trusted consumer brands.
Contact Information
For investor inquiries, please contact: Julianna Paterra, CFA, Vice President, Investor Relations
Verano
investors@verano.com
For media inquiries, please contact: Steve Mazeika, Vice President, Communications
Verano
Steve.Mazeika@verano.com
Frequently Asked Questions
What is the significance of the acquisitions for Verano?
The acquisitions increase Verano's operational capacity and market presence in Virginia and Arizona, expanding its reach to 14 states and enhancing its retail locations.
How many dispensaries does Verano now operate?
Verano now operates approximately 150 dispensaries across the U.S., including recent additions in Arizona.
What are the future plans for the Virginia market?
Verano plans to leverage its acquisitions in Virginia to capture growth in the existing medical cannabis program and prepare for potential adult-use legalization.
Who were the key management figures in this transaction?
George Archos, Verano's CEO, and David Hart, CEO of The Cannabist Company, were instrumental in the transaction discussions.
What kind of cannabis products does Verano produce?
Verano produces a wide array of high-quality cannabis products, including flower, edibles, oils, and various branded products for medical and adult use.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
Related Articles
- Bright Green Partners with Benuvia for Raw Material Supply
- Keywords Studios Plc: Public Opening Position Disclosure
- Altamira Therapeutics Expands Bentrio Distribution to Scandinavia
- CytoDyn Partners with CRO for Phase II Inflammation Study
- Patriot Glass Solutions Enhances Security with ASESS Shield
- Jet.AI Expands Opportunities with Warrant Amendments
- Cross Keys Capital Guides New Jersey Cancer Care Partnership
- MetaWorks Acquires FogDog Energy to Boost Operations
- AYR Cannabis Expands Retail with New Dispensaries in Florida
- Man Group PLC Discloses Stake in Keywords Studios plc