Verano Holdings Corp. VRNOF announced Monday that it wiil acquire significant assets from The Cannabist Company Holdings Inc. (Cboe CA: CBST) CBSTF 3LP. The acquisition, strategic to expanding its national footprint, includes one of Cannabist’s Virginia licenses, along with associated operations including all of Arizona operations.
Expanding Operations In Virginia And Arizona
The acquisition in Virginia encompasses a cultivation and production facility plus six dispensaries, positioning Verano as the exclusive cannabis operator for Health Service Area 5, which includes populated areas like Virginia Beach and Norfolk. The deal is poised at $90 million, with payment structured as $20 million cash, $40 million in Class A subordinate voting shares and a $30 million promissory note.
Meanwhile, Verano will add one cultivation facility, one production facility and two dispensaries in Arizona, boosting its total cultivation space in the state to 90,000 square feet. This expansion, costing $15 million payable in cash, increases Verano’s presence to eight dispensaries across Arizona.
Verano, Cannabist Execs Discuss Strategic Acquisition
“Today’s agreement further diversifies Verano’s portfolio, which, since the company’s inception, has remained focused on expanding our business into limited-license markets to scale both our wholesale and retail operations,” stated George Archos, Verano’s chairman and CEO, in a press release. “This opportunity greatly increases Verano’s growth trajectory as we gain access to the coveted market of Virginia ahead of an adult use program and deepens our footprint in Arizona.”
From The Cannabist Company’s perspective, the deal allows it to optimize the company’s operations while focusing on remaining assets in Virginia and preparing for future endeavors. “We are pleased to have reached an agreement and look forward to welcoming Verano to the robust Virginia market,” stated David Hart, CEO of The Cannabist Company. “We are so proud of what our Eastern Virginia and Arizona teams have accomplished and look forward to seeing the Verano team support their continued successes.”
Verano Expands Footprint Across 14 States
Subject to regulatory approvals, this deal promises to strategically position Verano ahead of Virginia’s anticipated adult-use cannabis program and expand its operational scale in Arizona. With this acquisition, Verano’s operational footprint will span 14 states with 15 cultivation sites and 150 dispensaries, marking important growth of its national cannabis market influence.
VRNOF Price Action
At market close on Monday, VRNOF’s shares traded at $3.95 per share.
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