- Expected to enhance Verano’s retail footprint in Pennsylvania, adding three coveted locations in key Pittsburgh metropolitan area.
- Expected to increase Verano’s access to Pennsylvania’s growing population of nearly 400,000 registered medical marijuana patients.
- Will further strengthen Verano’s experienced leadership with an engaged and aligned local management team.
CHICAGO, March 31, 2021 (GLOBE NEWSWIRE) — Verano Holdings Corp. (CSE: VRNO) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced it has entered into a definitive agreement to acquire all of the issued and outstanding equity interests of The Healing Center, LLC, adding three highly productive, award-winning dispensaries in the Pittsburgh-metro area. On closing, the acquisition will enhance Verano’s presence in Pennsylvania and will further the Company’s position as a U.S. market leader. Closing on the foregoing transaction is subject to customary conditions, contingencies, and approvals, including regulatory approval.
“After going public last month, Pennsylvania quickly became a priority for targeted expansion, as it will be integral to our future growth plan,” said George Archos, Co-Founder and CEO of Verano. “Upon completion of this deal, pending all required approvals, we will measurably increase our retail footprint, with the addition of three award-winning dispensaries, in a rapidly growing medical market that has signaled it could potentially transition to adult-use. We are fortunate to add a very talented and dedicated local management team as well. They will play a pivotal role in our success in Pennsylvania.”
Transaction Highlights
Verano has entered into a definitive agreement to acquire all of the issued and outstanding equity interests of The Healing Center, LLC, a premier medical cannabis dispensary group in Western Pennsylvania, for a total of US$110,300,000, which is expected to be satisfied by the payment of US$55,150,000 in cash and US$55,150,000 in a combination of Class A subordinate voting shares and Class B proportionate voting shares of Verano. Of the cash amount, 50% is payable at closing and the remaining 50% is payable 60 days after closing. The Healing Center, LLC operates three medical marijuana dispensaries in Cranberry Township, Washington and Monroeville. The Healing Center’s management team will remain with the Company.
“We are very excited about the future with Verano, a true operator in the cannabis industry who is not only focused on fiscal responsibility but culture as well,” said Jay Richards, Co-Founder and President of The Healing Center, LLC. “These were key factors in our decision for the sustained viability of what we have built and most importantly, for our employees’ long-term success and mobility.”
