Verano Announces Closing of Acquisition of Arizona and Virginia Subsidiaries of The Cannabist Company, Becomes Exclusive Cannabis Operator for HSA 5 in Eastern Virginia and Strengthens Arizona Footprint
Verano Holdings Corp. (OTCQX: VRNOF) has closed acquisitions of three subsidiaries from The Cannabist Company, expanding its footprint to 14 states, 15 cultivation and production facilities, and 150 dispensaries nationwide. The deal includes:
1. Arizona Operations: Gaining an active cultivation facility and two dispensaries in Tempe and Prescott, increasing Verano's retail presence to eight locations in the state.
2. Virginia Operations: Becoming the exclusive cannabis operator in HSA 5 in Eastern Virginia, acquiring a cultivation facility and six operational dispensaries in key cities.
The total consideration was $105 million, with $15 million for Arizona paid in cash, and $90 million for Virginia paid through a mix of cash, shares, and a promissory note. This strategic move strengthens Verano's market position and prepares for potential adult-use legalization in Virginia.
Verano Holdings Corp. (OTCQX: VRNOF) ha completato acquisizioni di tre filiali della The Cannabist Company, espandendo la propria presenza a 14 stati, 15 strutture di coltivazione e produzione e 150 dispensari a livello nazionale. L'accordo include:
1. Operazioni in Arizona: Acquisizione di una struttura di coltivazione attiva e due dispensari a Tempe e Prescott, aumentando la presenza al dettaglio di Verano a otto sedi nello stato.
2. Operazioni in Virginia: Diventando l'operatore esclusivo di cannabis in HSA 5 nell'Est della Virginia, acquisendo una struttura di coltivazione e sei dispensari operativi in città chiave.
Il valore totale dell'accordo è stato di 105 milioni di dollari, con 15 milioni per l'Arizona pagati in contante e 90 milioni per la Virginia pagati tramite una combinazione di contante, azioni e una cambiale. Questa mossa strategica rafforza la posizione di mercato di Verano e la prepara per una potenziale legalizzazione dell'uso adulto in Virginia.
Verano Holdings Corp. (OTCQX: VRNOF) ha cerrado adquisiciones de tres subsidiarias de The Cannabist Company, ampliando su presencia a 14 estados, 15 instalaciones de cultivo y producción, y 150 dispensarios en todo el país. El acuerdo incluye:
1. Operaciones en Arizona: Adquiriendo una instalación de cultivo activa y dos dispensarios en Tempe y Prescott, aumentando la presencia minorista de Verano a ocho ubicaciones en el estado.
2. Operaciones en Virginia: Convertiéndose en el operador exclusivo de cannabis en HSA 5 en el Este de Virginia, adquiriendo una instalación de cultivo y seis dispensarios operativos en ciudades clave.
La consideración total fue de 105 millones de dólares, con 15 millones para Arizona pagados en efectivo y 90 millones para Virginia pagados a través de una mezcla de efectivo, acciones y una letra de cambio. Este movimiento estratégico refuerza la posición de mercado de Verano y la prepara para una posible legalización del uso adulto en Virginia.
Verano Holdings Corp. (OTCQX: VRNOF)가 세 개의 자회사를 인수하여 The Cannabist Company로부터 인수 완료했다. 이를 통해 14개 주와 15개의 재배 및 생산 시설, 그리고 전국적으로 150개의 약국으로 사업을 확장하게 된다. 이 거래에는 다음이 포함된다:
1. 애리조나 운영: 템페와 프레스콧에 있는 두 개의 약국과 함께 활성 재배 시설을 인수하여, 애리조나 주에서 Verano의 소매 점포를 여덟 곳으로 늘린다.
2. 버지니아 운영: 동부 버지니아의 HSA 5에서 독점적으로 대마초를 운영하며, 주요 도시에서 재배 시설과 여섯 개의 운영 약국을 인수한다.
총 가치는 1억 5백만 달러로, 애리조나에 대한 1천5백만 달러는 현금으로 지불되었고, 버지니아에 대한 9천만 달러는 현금, 주식 및 약속 어음의 조합으로 지불되었다. 이 전략적 조치는 Verano의 시장 입지를 강화하고 버지니아에서 성인 사용의 법적 허가 가능성에 대비하게 한다.
Verano Holdings Corp. (OTCQX: VRNOF) a finalisé des acquisitions de trois filiales de The Cannabist Company, élargissant ainsi sa présence à 14 États, 15 installations de culture et de production, et 150 dispensaires à l'échelle nationale. L'accord comprend :
1. Opérations en Arizona: Acquisition d'une installation de culture active et de deux dispensaires à Tempe et Prescott, augmentant ainsi la présence de Verano à huit points de vente dans l'État.
2. Opérations en Virginie: Devenant l'opérateur exclusif de cannabis dans HSA 5 dans l'est de la Virginie, avec l'acquisition d'une installation de culture et de six dispensaires opérationnels dans des villes clés.
La valeur totale de la transaction s'élevait à 105 millions de dollars, avec 15 millions pour l'Arizona payés en espèces et 90 millions pour la Virginie payés par une combinaison de liquidités, d'actions et d'un billet à ordre. Ce mouvement stratégique renforce la position de marché de Verano et la prépare à une éventuelle légalisation de l'utilisation par les adultes en Virginie.
Verano Holdings Corp. (OTCQX: VRNOF) hat Akquisitionen abgeschlossen von drei Tochtergesellschaften der Cannabist Company, wodurch sich die Präsenz auf 14 Bundesstaaten, 15 Anbau- und Produktionsstätten und 150 Apotheken im ganzen Land ausweitet. Der Vertrag umfasst:
1. Betrieb in Arizona: Erwerb einer aktiven Anbauanlage und zwei Apotheken in Tempe und Prescott, wodurch Veranos Einzelhandelspräsenz auf acht Standorte im Bundesstaat erhöht wird.
2. Betrieb in Virginia: Exklusiver Betreiber von Cannabis in HSA 5 im östlichen Virginia werden, Erwerb einer Anbauanlage und sechs betriebsbereiter Apotheken in wichtigen Städten.
Der Gesamtbetrag betrug 105 Millionen Dollar, wobei für Arizona 15 Millionen in bar gezahlt wurden, und für Virginia 90 Millionen durch eine Mischung aus Bargeld, Aktien und einem Schuldschein bezahlt wurden. Dieser strategische Schritt stärkt Veranos Marktposition und bereitet sich auf eine mögliche Legalisierung der Erwachsenenbenutzung in Virginia vor.
- Expansion into Virginia market with exclusive rights in HSA 5, covering 2 million residents and 14 million annual tourists
- Increased footprint to 14 states, 15 cultivation facilities, and 150 dispensaries nationwide
- Strengthened Arizona presence with additional cultivation facility and two new retail locations
- Potential for near-term growth in Virginia's medical program and future adult-use market
- Significant cash outlay of $35 million for acquisitions
- Issuance of $40 million in shares, potentially diluting existing shareholders
- Addition of $30 million in debt through promissory note for Virginia acquisition
Acquisitions Expand Verano’s Footprint to 14 States, 15 Cultivation and Production Facilities, and 150 Dispensaries Nationwide
CHICAGO, Aug. 22, 2024 (GLOBE NEWSWIRE) -- 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 on July 29, 2024, and acquired all of the 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”).
In Virginia, Verano will be the sole vertical cannabis operator in HSA 5 in Eastern Virginia - a region with nearly two million residents and 14 million annual tourists - and gains an active cultivation and production facility and six operational dispensaries in Hampton, Norfolk, Portsmouth, Suffolk, Virginia Beach and Williamsburg. In Arizona, Verano gains an active cultivation and production facility and raises the Company’s retail footprint to eight locations with the addition of stores in Tempe and Prescott, complementing its existing six Zen Leaf dispensaries and multiple cultivation and processing facilities in the state.
Verano Management Commentary
“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 in Prescott and Tempe. We are thankful for the Cannabist team’s partnership, and thrilled to welcome new colleagues in Virginia and Arizona as we turn the page on an exciting new chapter for Verano.”
The Cannabist Company Management Commentary
“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 with Verano. 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. We look forward to working alongside Verano in Virginia as we continue in the Richmond region to support a growing medical program and look toward the future of adult use. Thank you to everyone involved for making this a success,” said David Hart, CEO, The Cannabist Company.
The Cannabist Company will maintain its Virginia operations in the Richmond region (HSA 4), with approximately 80,000 square feet of cultivation and manufacturing capacity, five retail locations in operation and one in development. With the close of the Arizona transaction, The Cannabist Company now operates in 14 markets, which will be reduced to 12 markets once the exits in Florida and Washington, DC are finalized.
Transaction Highlights
Total consideration for the Arizona Operations was
About Verano
Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF), one of the U.S. cannabis industry’s leading companies based on historical revenue, geographic scope and brand performance, is a vertically integrated, multi-state operator embracing a mission of saying Yes to plant progress and the bold exploration of cannabis. Verano provides a superior cannabis shopping experience in medical and adult use markets under the Zen Leaf™ and MÜV™ dispensary banners, including Cabbage Club™, an innovative annual membership program offering exclusive benefits for cannabis consumers. Verano produces a comprehensive suite of high-quality, regulated cannabis products sold under its diverse portfolio of trusted consumer brands including Verano™, (the) Essence™, MÜV™, Savvy™, BITS™, Encore™, and Avexia™. Verano’s active operations span 14 U.S. states, comprised of 15 production facilities with over 1,100,000 square feet of cultivation capacity. Learn more at Verano.com.
Media Note: Images and Video are available for download via the Verano Company Newsroom (Credit: “Courtesy of Verano”).
Contacts:
Investors
Verano
Julianna Paterra, CFA
Vice President, Investor Relations
investors@verano.com
Media
Verano
Steve Mazeika
Vice President, Communications
Steve.Mazeika@verano.com
312-348-4430
About The Cannabist Company (f/k/a Columbia Care)
The Cannabist Company, formerly known as Columbia Care, is one of the most experienced cultivators, manufacturers and providers of cannabis products and related services, with licenses in 14 U.S. jurisdictions. The Company operates 95 facilities including 73 dispensaries and 22 cultivation and manufacturing facilities, including those under development and assuming the closure of announced divesture transactions. Columbia Care, now The Cannabist Company, is one of the original multi-state providers of cannabis in the U.S. and now delivers industry-leading products and services to both the medical and adult-use markets. In 2021, the Company launched Cannabist, its retail brand, creating a national dispensary network that leverages proprietary technology platforms. The company offers products spanning flower, edibles, oils and tablets, and manufactures popular brands including Seed & Strain, Triple Seven, Hedy, gLeaf, Classix, Press, and Amber. For more information, please visit www.cannabistcompany.com.
Investors
The Cannabist Company
Lee Ann Evans
SVP, Capital Markets
investor@cannabistcompany.com
Media
The Cannabist Company
Lindsay Wilson
SVP, Communications
media@cannabistcompany.com
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s and The Cannabist Company’s beliefs regarding future events, plans, strategies, or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s and The Cannabist Company’s control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “future”, “scheduled”, “estimates”, “forecasts”, “projects,” “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company and The Cannabist Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein, including, without limitation, the risk factors described in the Company’s and The Cannabist Company’s annual reports on Form 10-K and any subsequent quarterly reports on Form 10-Q, in each case, filed with the U.S. Securities and Exchange Commission at www.sec.gov. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company and The Cannabist Company do not undertake to update any forward-looking information or forward-looking statements that are contained or referenced herein, except as may be required in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or The Cannabist Company or persons acting on their behalf is expressly qualified in its entirety by this notice regarding forward-looking information and statements.
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