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Verano Expands In Arizona, Secures $80M In Financing

February 24, 2021 5:40 pm
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Verano Expands In Arizona, Secures $80M In Financing

Verano Holdings Corp. (CSE:VRNO) is expanding its footprint in Arizona.

The Chicago-based cannabis company confirmed Wednesday it’s purchasing three dispensaries located in Mesa, Chandler and Gilbert.

The deal also includes a Winslow-based cultivation and production facility, including an 11,000-square-foot indoor cultivation facility and an 8,100-square-foot greenhouse.

The price tag of $7.25 million is payable in cash as well as Verano’s Class A Subordinate Voting Shares and or Class B Proportionate Voting Shares equal to 3,989,875 SVSs.

In addition, Verano opted to pay a finder’s fee amounting to $2,322,059, including $1,624,971 in cash and some 27,500 of its shares.

Verano Arizona expects to close the merger with Target Companies, including Arizona-based COBISH LLC, NZCO LLC, Murff & Company LLC, JWC1 LLC, and Hu Commercial Properties LLC, by the end of the first quarter or early in the second quarter.

“We couldn’t be more thrilled to join a likeminded team that brings passion and a culture of positivity to their communities and team members,” said James Christensen, co-founder of Territory Dispensary.

“The opportunities that this merger will provide for our team are second to none, and we are excited to be a part of the driven and successful Verano family,” he added.

In December, Verano went public in Canada via a reverse takeover of Majesta Minerals Inc., on the heels of merging with Alternative Medical Enterprises LLC, Plants of Ruskin LLC, and other affiliated entities to boost its presence within Arizona and Florida.

Verano To Raise CA$100 Million: Separately, Verano has secured some CA$100 million ($79.514 million) in financing through a bought deal private placement of some 3.51 million special warrants at CA$28.50.

Under the agreement with Beacon Securities Limited and Canaccord Genuity Corp., underwriters have an option, exercisable by Beacon, to purchase up to an additional 526,500 special warrants at the set price at any time up to 48 hours before the deal is closed.

The offering is scheduled to close on or about March 11.

Verano said Wednesday it will use the proceeds to fund acquisitions as well as working capital and general corporate purposes.