Cannabis MSO Verano to expand in 3 states via deals exceeding $100 million

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Cannabis multistate operator Verano Holdings announced agreements to acquire a total of nine operating retail outlets or licenses in Arizona, Illinois and Pennsylvania for nearly $100 million in cash and tens of millions of dollars more in stock.

The transactions are expected to close by early second quarter, subject to regulatory approvals and other conditions.

The announcement came shortly after Chicago-based Verano raised nearly $80 million for acquisitions and went public through a reverse takeover.

The acquisitions include:

  • Perpetual Health Care in Arizona, which operates the Emerald Dispensary in Phoenix, for $11.25 million in cash and roughly the same amount in stock. The deal comes on top of a recent announcement to buy Territory Dispensary, which has three locations in Arizona.
  • The Herbal Care Center in Chicago, one of Illinois’ largest combined medical and adult-use marijuana stores for $17.5 million in cash payable over 12 months as well as 904,642 shares. Verano shares are trading at about $22 a share, making the current value of the stock in the deal at nearly $20 million. The acquisition includes the ability to open an additional store in Chicago.
  • TerraVida Holistic Centers, which operates three medical dispensaries in Pennsylvania, for $62.5 million in cash, subject to adjustment, and around 3 million shares.
  • A license in Pennsylvania that would enable Verano to open three dispensaries for $7.35 million in cash and 1.33 million shares of stock.

“We are enormously excited for what the future holds in Illinois, Pennsylvania and Arizona,” said George Archos, co-founder and CEO of Verano.

“Each are core markets for us and present robust, thoughtfully designed programs with great potential, for sound operators, patients and consumers alike.”

Verano trades on the Canadian Securities Exchange under the ticker symbol VRNO and on the U.S. over-the-counter markets as VRNOF.