This is part of a regular series of MJBizDaily interviews with major THC industry players. To be considered for an interview, contact editorial@mjbizdaily.com.
Cannabis multistate operator Verano Holdings is remodeling its Virginia footprint ahead of the launch of what could be a billion-dollar adult-use market.
Between now and the first Virginia adult-use cannabis sale in July, CEO George Archos is positioning Verano to capture a sales surge without overbuilding.
“The upcoming Virginia adult-use transition is a huge moment,” Archos told MJBizDaily.
“The transition from medical to adult-use is big for the industry.”
What is the leading cananbis MSO in Virginia?
The Chicago-based multistate operator holds one of Virginia’s few vertically integrated medical marijuana permits, acquired as part of its $90 million purchase of The Cannabist Co.’s Virginia operations in 2024.
Verano plans to relocate some of its six existing dispensaries, expand cultivation and add automation to meet expected demand, Archos told MJBizDaily.
So far, the company completed a second cultivation facility in Virginia and renovated its existing site, Archos said during the company’s second-quarter earnings call in August.
Verano also intends to complete “all necessary requirements” to sell to adult-use customers, according to a company representative.
Among those requirements is a $10 million conversion fee.
How did Archos’ background frame his approach to cannabis?
Before he got into cannabis, Archos was a successful restaurateur. He still owns several restaurants in Chicago.
When Archos founded Illinois medical cannabis cultivator Ataraxia Grow and Labs in 2014, he carried the lessons he learned in hospitality with him.
“You’re only as good as your last transaction, just like a restaurant is only as good as the last meal you had there,” Archos said.
That mindset runs through Verano’s approach to customer service and product quality:
- Build a loyal customer base
- Offer the right products at the right price
- Stand behind your brand
On the cultivation side, that means quality above all.
On the operational side, it means real estate development, zoning and logistics – the same fundamentals that drive growth for restaurants.
What led Archos to the cannabis industry?
Archos frames his 2014 entry into cannabis as a decision about people, not business.
Family members battling cancer and an uncle with multiple sclerosis drove the choice. Certain oils had shown anecdotally that they could reduce tumors and pain.
Archos wanted to bring that relief to patients.
“It was about helping people in my home state – that was really the driving factor,” he said.
More than a decade later, Verano’s medical component remains central. The company continues to conduct research on health outcomes to refine its formulations and has applied to register its medical marijuana businesses with the U.S. Drug Enforcement Administration.
Archos called the April Justice Department final order reclassifying medical marijuana as a Schedule 3 drug a defining moment for Verano.
Medical sales account for nearly 60% of the company’s retail revenue.
“It’s the most pivotal moment in our 12-year history,” he said. “All of the work we did paid off.”
How did Verano get where it is?
Verano has been on a shopping spree in recent years, acquiring:
- The Cannabist Co.’s operations in Arizona and Virginia for $105 million in 2024, Verano’s most recent major acquisition
- Nevada-based Sierra Well for $29 million in cash and stock in 2021
- Territory Dispensary’s Arizona retail assets for $7.3 million in cash and stock in 2021
The company now has 163 retail locations, 14 cultivation and production facilities and more than 3,800 employees in 13 states.
Verano’s strategy targets a specific profile: limited-license states, entrepreneurs with prior business history and assets built for longevity, Archos said.
On the cultivation side, that means facilities with strong HVAC systems. On the retail side, it means operators who’ve built rapport with their customers.
“We’ve been a pretty acquisitive company since our inception,” Archos said.
“We’re looking for new states and new businesses. We’re looking for great operators and great people.”
Archos and his team also spend a lot of time on due diligence and meeting the people behind each business to ensure seamless integration of the companies it acquires.
“Pretty much every deal has gone as expected, although we may have to move a few retail stores around,” he said.
Verano strives to optimize its retail locations to best serve its medical and adult-use customers, which can include relocation as in Virginia.
The company aims to open stores with larger interior spaces in more convenient locations near major thoroughfares and other businesses. Parking and drive-thru capabilities are considerations.
How does Verano integrate new acquisitions into the company?
Growth created operational challenges beyond the balance sheet. Company culture is a priority, Archos said.
When Verano acquires a business, the focus is making sure the new team feels part of the whole.
Archos described a workplace built on communication, with corporate teams traveling across the country to stay connected. Over the past 18 months, Archos has visited nearly every store in Verano’s portfolio.
Cannabis has weathered price collapses and capital droughts. Archos sees price compression as part of how markets mature.
Lower prices benefit consumers but strain businesses that can’t sustain them.
To that end, Verano has consistently become more efficient, leaning on automation, new equipment and improved growing methods to reduce labor and pull more products from each plant.
Is Verano going to uplist?
Archos recently redomiciled Verano from Canada to Nevada, completed a share repurchase and executed a 1-to-5 stock split.
The restructuring gives the MSO more options on U.S. exchanges as the cannabis market evolves.
“We’ve seen a couple of operators transition over to NYSE,” he said, referring to competitor Trulieve Cannabis Corp.’s uplisting.
“We would like to be on a bigger exchange, so we’re getting the company ready to move quickly.”
Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.
