Verano Holdings to Add Depth to Arizona Footprint with Agreement to Acquire Local Joint
-- Pending transaction supports the Company's focused strategy to establish a leading position in core markets -- Expands Verano's retail footprint in Arizona, a newly adopted adult-use market, to six operating dispensaries -- Gives the Company the third largest active retail footprint in the state, while adding another primely located Phoenix storefront
CHICAGO, March 22, 2021 (GLOBE NEWSWIRE) — Verano Holdings Corp. (CSE: VRNO) (“Verano” or “the Company”), a leading multi-state cannabis company, today announced it has entered into an agreement to acquire control of Patient Alternative Relief Center, Inc. d/b/a Local Joint, a high traffic dispensary in Phoenix, Arizona. The transaction will further elevate Verano’s retail footprint in Arizona — one of the country’s latest states to begin sales of adult-use cannabis – to six operating dispensaries.(1)
“Adding meaningful depth within our core markets has been our recent focus,” said George Archos, Co-Founder and CEO of Verano. “Arizona is, of course, a core market for us and will remain a priority within our national footprint going forward. The addition of Local Joint, a highly active, efficient operation with a prime, downtown Phoenix location and a robust consumer-base is very appealing to us. We’ve been fortunate to find like-minded partners and operators to expand our Verano family in Arizona in support of our objective to capture a leading position in the market.”
The dispensary is situated just minutes from the airport and the densely-populated university campus community. Under the terms of the agreement, Verano Arizona II, LLC, a subsidiary of Verano, will acquire the rights to manage Local Joint from its current manager, Flower Launch LLC. The total consideration includes cash consideration of US$13,500,000, with US$10,000,000 payable on the closing date and a US$3,500,000 promissory note payable within 120 days after the closing date, and stock consideration of US$3,500,000 payable in Class A subordinate voting shares of the Company.
“We are excited to see the next phase of Local Joint’s development” said John Vatistas, Flower Launch President. “We take real pride in having transformed Local Joint from its prior iteration to the present highly active, efficient operation which attracted the notice of a sophisticated operator like Verano.”
The closing of the transaction described herein is subject to regulatory filings or approvals and other customary closing conditions. The transaction is expected to close in late Q1 or early Q2 of 2021.