Verano to Add Cultivation and Fortify Retail Capacity in Pennsylvania
- Adds cultivation and production in Pennsylvania, with an active and completely built-out, state-of-the-art 62,000 sq. ft. indoor facility in the country’s fifth most populous state.
- Gives the Company the ability to further develop its retail footprint with equity in a permit to open six dispensaries, and a second cultivation and production facility.
CHICAGO, April 22, 2021 (GLOBE NEWSWIRE) — Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) (“Verano” or “the Company”), a leading multi-state cannabis company, today announced it has entered into definitive agreements for all of the issued and outstanding equity interests in Agri-Kind, LLC, Agronomed Holdings Inc. and Agronomed Biologics, LLC, which collectively will add the equity in two cultivation licenses (one active location plus another facility for additional cultivation and production that is currently under construction) and the equity in a permit to add six dispensaries (non-active, to be developed) in Pennsylvania. These equity transactions will enhance Verano’s presence in Pennsylvania and further the Company’s position as a U.S. market leader. Closing on the foregoing transactions is subject to customary conditions, contingencies, and approvals, including regulatory approvals.
We’ve been determined to gain a true leadership position in Pennsylvania. With the pending equity transactions of Agri-Kind and Agronomed Biologics, in addition to our previously announced pending equity transactions for six of the State’s top performing dispensaries, we’re assertively executing on our strategy.
George Archos, Co-Founder and CEO of Verano
Adding cultivation is an important component of our model, enabling us to drive strong margin expansion. We’re very excited for the opportunity to bring cultivation online and introduce Verano’s premium product offerings to Pennsylvania’s considerable patient community.
Transaction Highlights
Verano has entered into definitive agreements for two transactions, which include an active 62,000 sq. ft. cultivation facility, the equity in a permit for six dispensaries and an additional cultivation facility that is currently under construction through Pennsylvania’s Clinical Registrant program.
- Agri-Kind.Subject to the terms of the agreement, Verano has agreed to a transaction for all of the issued and outstanding equity interests in Agri-Kind, a 62,000 sq. ft. grower/processor located in Chester, and in Agronomed Holdings Inc. for US$66,000,000 in cash consideration, US$49,500,000 in stock on an as-converted basis, subject to adjustment, and an earnout of US$31,500,000 based upon certain performance metrics. Agri-Kind’s management team is expected to remain with the company.
- Agronomed Biologics. Subject to the terms of the agreement, Verano has agreed to a transaction for all of the issued and outstanding equity interests in Agronomed Biologics, a research joint venture between Agronomed Pharmaceuticals, LLC and The Healing Center for US$60,000,000 in a combination of cash and stock, in addition to earnouts and other adjustments. Agronomed is committed to advancing the medical cannabis industry through the research and development of products that provide the best possible medical efficacy. Through Pennsylvania’s Chapter 20 Clinical Research Program, Agronomed is a Phase II Approved Clinical Registrant, and therefore is permitted to open a medical marijuana growing and processing facility, as well as six dispensaries, to conduct medical marijuana research in partnership with Drexel University College of Medicine.
About Verano
Verano Holdings Corp. is a leading, vertically-integrated, multi-state cannabis operator in the U.S., devoted to the ongoing improvement of communal wellness by providing responsible access to regulated cannabis products. With a mission to address vital health and wellness needs, Verano produces a comprehensive suite of premium, innovative cannabis products sold under its trusted portfolio of consumer brands: Verano, Avexia, Encore, and MÜV™. The company’s portfolio encompasses 14 U.S. States, with active operations in 11, which includes nine production facilities comprising approximately 770,000 square feet of cultivation. Verano designs, builds, and operates dispensaries under retail brands Zen Leaf™ and MÜV™, delivering a superior cannabis shopping experience in both medical and adult-use markets. Learn more at www.verano.com
