Chicago-based cannabis multistate operator Verano Holdings Corp. entered into an agreement with The Cannabist Co. to acquire the New York-headquartered MSO’s plant-touching operations in Arizona and Virginia.
Verano will pay $105 million in cash, stock and promissory notes to acquire properties in the two states, growing its footprint to 14 U.S. markets, according to a Monday news release.
As part of the agreement, Verano will pay $15 million in cash for The Cannabist Co.’s Arizona operations, which include one cultivation site, one production facility and its only two marijuana retail stores in the state, in Prescott and Tempe.
The assets Verano is purchasing from The Cannabist Co. in Virginia include one cultivation site, one production facility and six stores.
Upon closing, Verano will:
Pay $20 million in cash as a closing consideration.
Pay $40 million in Class A subordinate voting shares.
Issue a $30 million promissory note.
That’s a total consideration of $90 million.
Virginia allows home delivery of marijuana, and after the deal is finalized, Verano will be the sole cannabis operator in one of the state’s designated zones, which includes Chesapeake, Norfolk and Virginia Beach.
The deal with Verano does not include The Cannabist Co.’s operations in the Richmond, Virginia, region, where it operates 80,000 square feet of cultivation and manufacturing space as well as five stores and one in development.
This deal follows a June announcement that The Cannabist Co. was cutting costs by:
Divesting all assets and licenses in Florida.
Closing an underperforming retail store in Trinidad, Colorado.
Shuttering two stores in New York and reducing operational hours at two of its medical marijuana dispensaries in the state.
H/T: mjbizdaily.com
